Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

The number of outstanding shares of each class of stock of AstraZeneca PLC as of December 31, 20162017 was:

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

x Yes   o No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

o Yes   x No

Note — checkingChecking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes   o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

ox Yes   o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. o

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

o Item 17   o Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes   x No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by SectionsSection 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

o Yes   o No

Pursuant to Rule 12b-23(a) of the Securities Exchange Act of 1934, as amended, the information for the 20162017 Form 20-F of AstraZeneca PLC (“AstraZeneca” or the(the “Company”) set out below is being incorporated by reference from the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated and submitted on March 7, 2017.6, 2018.

References below to major headings include all information under such major headings, including subheadings, unless such reference is a reference to a subheading, in which case such reference includes only the information contained under such subheading. GraphsUnless the context otherwise requires, “AstraZeneca” or “Group” refers to the Company and its consolidated entities. Other information contained within AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F, including graphs and tabular data, areis not included in this Form 20-F unless specifically identified below. Photographs are also not included.

In addition to the information set out below, the information (including tabular data) set forth under the headings “Important information for readers of this Annual Report”, “Definitions”, and “Use of terms” on the inside front cover, “Cautionary“Strategic Report—Financial Review—Measuring performance” on pages 68 and 69, and the tables on page 70, “Additional Information —Trade Marks” on page 234, “—Glossary” on pages 235 to 238 and “—Important information for readers of this Annual Report—Cautionary statement regarding forward-looking statements”, “Inclusion“—Inclusion of Reported performance, Core financial measures and constant exchange rate growth rates”, “Statements“—Statements of competitive position, growth rates and sales”, “AstraZeneca“—AstraZeneca websites”, “External/“—External/third party websites” and “Figures”“—Figures” on page 243, “Glossary” on pages 239 to 241, “Trade Marks” on page 238, “Measuring performance” on pages 64 and 65, and the tables on page 65,240, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference. References herein to AstraZeneca websites are textual references only and information on or accessible through such websites does not form part of and is not incorporated into this Form 20-F dated March 6, 2018.

PartPART 1

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. Selected Financial Data

The information (including graphs and tabular data) set forth under the headings “Financial Statements—Group Financial Record” on page 203199, “Additional Information—Shareholder Information—Issued share capital, shareholdings and share prices” and the first table that appears under “Additional Information—Shareholder Information—AstraZeneca PLC share listings and prices”“—Ordinary Shares in issue” on page 232,229, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference. The selected financial data incorporated by reference herein is derived from audited financial statements of the Company and its consolidated entities, prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union and as issued by the International Accounting Standards Board, included in the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 2017.6, 2018.

B. Capitalization and Indebtedness

Not applicable.

C. Reason for the Offer and Use of Proceeds

Not applicable.

1

D. Risk Factors

The information (including tabular data) set forth or referenced under the heading “Additional Information—Risk” on pages 214210 to 225220 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

The information (including tabular data) set forth under the headings “Additional Information—CorporateShareholder Information—History and development of the Company” on page 237,229, “Strategic Report—Financial Review— Externalisation Revenue” on pages 66 to 68, “Strategic Report—Financial Review—Business combinations” on page71 and 72, “Strategic Report—Financial Review—Financial position –— 31 December 2016—2017— Business combinations” on page 73,75, “—Investments, divestments and capital expenditure” on page 75,pages 77 and 78, “Financial Statements—Notes to the Group Financial Statements—Note 25—Acquisitions of business operations” on pages 173 to 177and 174 and “Corporate Governance—Corporate Governance Report—Relations with shareholders” on page 93,96, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

B. Business Overview

The information (including graphs and tabular data) set forth under the headings “Strategic Report—AstraZeneca at a glance” on pages 2 toand 3, “—Chairman’s Statement” on pages 82 to 83,page 4, “—Chief Executive Officer’s Review” on pages 45 to 6,7, “—Strategy”Strategy and key performance indicators” on pages 817 to 22 but excluding the information set forth under the subheading “Viability statement” on page 22 ,21, “—Business Review” on pages 4222 to 53,45, “—Therapy Area Review” on pages 2346 to 41,62, “—Resources Review” on pages 54 to 61, “Additional Information—Geographical Review” on pages 226 to 230, “—Risk Overview—Managing Risk” and, “—Risk Overview —Risk management embedded in business processes” and “— Risk Overview—Brexit” on page 22,63, “Corporate Governance—Corporate Governance Report—Business organisation—Global Compliance and Internal Audit Services (IA)” on page 95,pages 97 and 98, “Additional Information—Development Pipeline” on pages 204202 to 210,207, “—Patent Expiries of Key Marketed Products” on pages 211 to 213208 and 209, “—Sustainability: supplementary information” on page 231,227 and “—Geographical Review” on pages 221 to 226, “Financial Statements—Notes to the Group Financial Statements—Note 1—Revenue” on page 147,145, “—Note 6—Segment information” on pages 151 and 152, to 154, and “Important“Additional Information— Important information for readers of this Annual Report—Statements of competitive position, growth rates and sales” on page 243,240, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

On February 16, 2017 AstraZeneca’s15, 2018, AstraZeneca and MSD announced that the FDA has granted Orphan Drug designation for selumetinib, a MEK 1/2 inhibitor, for the treatment of neurofibromatosis type 1. The FDA’s Orphan Drug programme provides orphan status to medicines that are defined as those intended for the safe and effective treatment, diagnosis or prevention of rare diseases or disorders that affect fewer than 200,000 people in the U.S. partner Valeant Pharmaceuticals

On February 19, 2018, AstraZeneca and MedImmune, its global biologics research and development arm, announced that the FDA had approvedSiliqImfinzi (brodalumab) injection for the treatment of adult patients with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapyunresectable Stage III NSCLC whose disease has not progressed following concurrent platinum-based chemotherapy and have failed to respond or have lost response to other systemic therapies.radiation therapy.

On February 17, 201723, 2018, AstraZeneca and MSD announced that the CHMP of the European Medicines Agency had adopted a positive results from its Phase III OLYMPIAD trial comparingopinion, which recommended a marketing authorization of Lynparza (olaparib) tablets (300mg twice daily) to physician’s choice offor use as a standard of care chemotherapy in the treatment ofmaintenance therapy for patients with HER2-negative metastatic breastplatinum-sensitive relapsed high grade, epithelial ovarian, fallopian tube, or primary peritoneal cancerharbouring germline BRCA1 who are in complete response or BRCA2 mutations. Patients treated withpartial response to platinum-based chemotherapy. Lynparza showed a statistically-significant and clinically-meaningful improvementis recommended for treatment in progression-free survival (PFS) compared with those who received chemotherapy (capecitabine, vinorelbine or eribulin).

On February 17, 2017, AstraZeneca and its global biologics research and development arm, MedImmune, announced updated efficacy and safety data for durvalumab in patients with locally-advanced or metastatic urothelial cancer.

On February 20, 2017 AstraZeneca announced that it had entered into an agreement with TerSera Therapeutics LLC (TerSera) for the commercial rights to Zoladex (goserelin acetate implant) in the U.S. and Canada. Zoladex is an injectable luteinising hormone-releasing hormone agonist, used to treat prostate cancer, breast cancer and certain benign gynaecological disorders. It was first approved in the U.S. and Canada in 1989. Under the termsthis setting regardless of the agreement, TerSera will pay AstraZeneca $250 million upon completion. AstraZeneca will also receive sales-related income through milestones totalling up to $70 million, as well as recurring quarterly sales-based payments at mid-teen percent of Product Sales. AstraZeneca will also manufacture and supply Zoladex to TerSera, providing a further source of ongoing income from Zoladex in the U.S. and Canada.

On February 24, 2017 AstraZeneca announced that the CHMP of the EMA had issued a positive opinion recommending the approval of ZS-9 (sodium zirconium cyclosilicate) for the treatment of hyperkalaemia, a serious condition characterized by high potassium levels in the blood serum caused by cardiovascular, renal and metabolic diseases.patients’ BRCA mutation status.

On February 28, 20172018, AstraZeneca announced that the FDA had approved once-daily Qtern (10mg dapagliflozinMedImmune was spinning out six molecules from its early-stage inflammation and 5mg saxagliptin) for the treatment of Type-2 diabetes.autoimmunity programmes into an independent biotech company, Viela Bio, Inc. The new medicine is indicated as an adjunct to diet and exercise to improve glycaemic (blood sugar level) control in adults with Type-2 diabetes who have inadequate control with dapagliflozin (10mg) or who are already treated with dapagliflozin and saxagliptin.company will focus on developing medicines for severe autoimmune diseases by targeting the underlying causes of each disease.

On March 3, 2017 MedImmune, the global biologics research and development arm of AstraZeneca, and Sanofi Pasteur, the vaccines division of Sanofi, announced an agreement to develop and commercialize MEDI8897 jointly. MEDI8897 is a monoclonal antibody for the prevention of lower respiratory tract illness (LRTI) caused by respiratory syncytial virus, the most prevalent cause of LRTI among infants and young children. MEDI8897 is currently in a Phase IIb clinical trial in pre-term infants who are ineligible forSynagis, the current standard of care medicine, and the development plan includes a proposed Phase III trial in healthy full-term and late pre-term infants. Under the terms of the global agreement, Sanofi Pasteur will make an upfront payment of €120 million and pay up to €495 million upon achievement of certain development and sales-related milestones. The two companies will share all costs and profits equally. MedImmune and AstraZeneca will continue to lead all development activity through initial approvals, and AstraZeneca will retain MEDI8897 manufacturing activities. Sanofi-Pasteur will lead commercialization activities for MEDI8897.2

Disclosures Under the Iran Threat Reduction and Syria Human Rights Act of 2012

The CompanyAstraZeneca is a global, innovation-driven biopharmaceutical business with operations in over 100 countries and ourits innovative medicines are used by millions of patients worldwide. AstraZeneca has a dormant legal entity based in Iran, AstraZeneca Pars Company (“AstraZeneca Pars”), which has no employees, and is owned by non-U.S. Group companies. The Company,In July 2017, AstraZeneca Pars submitted regulatory applications in its name with a view to commencing business in 2018. AstraZeneca, through one of its non-U.S. Group companies that is neither a U.S. person nor a foreign subsidiary of a U.S. person, currently has sales of prescription pharmaceuticals in Iran solely through a single third-party distributor, which uses three known entities in the Iranian distribution chain. None of AstraZeneca’s U.S. entities are involved in any business activities in Iran, or with the Iranian government. To the best knowledge of the management of AstraZeneca, the third-party distributor used by AstraZeneca is not owned or controlled by the Iranian government and the Company does not have any agreements, commercial arrangements, or other contracts with the Iranian government. However, the CompanyAstraZeneca understands that one of the independent sub-distributors of AstraZeneca’s third-party distributor is likely to be indirectly controlled by the Iranian government. Further, AstraZeneca’s third-party distributor may initiate payments using local banks associated with the government of Iran for the purchase of AstraZeneca products. Finally, in view of the types of products created and distributed by AstraZeneca, it is anticipated that the ultimate end-payers for ourits medicines may also include the Iranian government. To the best knowledge of management of AstraZeneca, AstraZeneca does not have any agreements, commercial arrangements, or other contracts with the Iranian government. On 11 February 2017, a non-U.S. Group company, that is neither a U.S. person nor a foreign subsidiary of a U.S. person, entered into a memorandum of understanding with the Iranian Ministry of Health, whereby AstraZeneca committed to improving the overall quality of healthcare and ensuring that Iranian patients have access to the latest innovative and cost-effective medicines.

For the year ended December 31, 2016,2017, the Company’s gross revenues and net profits attributable to the above-mentioned Iranian activities were $16$18 million and $6$7 million respectively. For the same period, the AstraZeneca Group’sAstraZeneca’s gross revenues and net profits were $23.0$22.5 billion and $3.4$2.9 billion, respectively. Accordingly, the gross revenues and net profits attributable to the above-mentioned Iranian activities amounted to approximately 0.07%0.08% of the AstraZeneca GroupAstraZeneca’s gross revenues and approximately 0.18%0.24% of its net profits.

At the time of publication, the management of AstraZeneca does not anticipate any change in its activities in Iran that would result in a material impact on the AstraZeneca Group.AstraZeneca.

C. Organizational Structure

The information (including tabular data) set forth under the headings “Corporate Governance—Corporate Governance Report—Other matters—Subsidiaries and principal activities” on page 9698 and “Financial Statements—Group Subsidiaries and Holdings” on pages 193190 to 196,193, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

D. Property, Plant and Equipment

The information below under the heading Item 5 –— “Operating and Financial Review and Prospects—Operating Results—20152017 compared with 2014—2016—Financial position – 2015—— 31 December 2017—Property, plant and equipment”. on page 75. The information (including tabular data) set forth under the headings “Strategic Report — Investing for the future: Led by science in Cambridge”Report—Business Review—1. Achieve Scientific Leadership—R&D Resources” on page 7,25, “—Resources Review—Manufacturing”, “—R&D resources”2. Return to growth—Operations” on pages 30 to 31 and “—2. Return to growth—Information technology and information services resources” on pages 58 to 60,page 33, “Strategic Report—Financial Review—Financial position –— 31 December 2016—2017—Property, plant and equipment” on page 73 ,75, “Additional Information—Risk—Risks and uncertainties—Legal, regulatory and compliance risks—Failure to adhere to applicable laws, rules and regulations” on page 222,218, “Financial Statements—Notes to the Group Financial Statements—Note 7—Property, plant and equipment” on page 155,153, “—Note 28—Commitments and contingent liabilities—Environmental costs and liabilities” on page 185,182, “—Note 29—Operating leases” on page 191189 and “Additional Information—CorporateShareholder Information—Property” on page 237,232, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

3

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The information (including graphs and tabular data) set forth under the headings “Additional Information—Geographical Review” on pages 221 to 226, to 230, “Strategic Report—Therapy Area“Chief Executive Officer’s Review—Therapy Area Overview and Pipeline—Global Product Sales by therapy area” on page 23,6, “Strategic Report—Strategy”Strategy and key performance indicators” on pages 817 to 22,21, “Strategic Report—Business Review—1. Achieve scientific leadership” on pages 4523 to 48,25, “Corporate Governance—Corporate Governance Report—Business organisation—Overview—Early Stage Product Committees (ESPCs)” and “—Late Stage Product Committee (LSPC)” on page 94,90, “Additional Information—Risk—Commercialisation risks—risks” on pages 216212 to 219,215, “Financial Statements—Notes to the Group Financial Statements—Note 17—Interest-bearing loans and borrowings” on pages 161 and 162, to 163, “—Note 12—Derivative financial instruments” on page 161,159, “—Note 21—Reserves” on page 172,171, “—Note 26—Financial risk management objectives and policies” on pages 177175 to 181179 and “—Note 28—Commitments and contingent liabilities” on pages 185182 to 191,188, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

We consider the Group’s working capital to be sufficient for its present requirements.

Operating Results

20162017 compared with 20152016

The Information set forth under the heading “Strategic Report—Financial Review” on pages 6266 to 8183 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

20152016 compared with 20142015

Results of operations –— summary analysis of year ended 31 December 20152016

20152016 Reported operating profit

20154

2016 Reconciliation of Reported results to Core results

(1)   Each of the measures in the Core column in the above table are non-GAAP measures.

(2)   Gross margin as a % of Product Sales reflects gross profit derived from Product Sales, divided by Product Sales.

Total Revenue

Total Revenue for 2015 of $24,708 million2016 was down 7% in the year reflecting the particular weakness of key trading currencies against the U.S. dollar (CER: up 1%). Total Revenue comprisedto $23,002 million, comprising Product Sales of $23,641$21,319 million (down 9% Actual, down 1% CER)10%) and ExternalizationExternalisation Revenue of $1,067$1,683 million (up 136% actual,58%). At CER, Total Revenue declined by 5% in 2016.

Product Sales

The decline in Product Sales primarily reflected the entry in the U.S. of multiple Crestor generic medicines.

By Geography

U.S. Product Sales were down 22% to $7,365 million in 2016, reflecting the competition from multiple generic Crestor medicines that entered the U.S. market from July 2016 as well as lower Product Sales of Nexium and Symbicort. In Europe, strong growth in Product Sales of Forxiga and Brilique were more than offset by a decline in Symbicort, leading to a decrease of 5% (CER: decrease of 3%) in the region in total to $5,064 million. Established Markets were up 140% CER)2% in 2016 (CER: down 4%) at $3,096 million including an increase of 8% in Japan (CER: decrease of 3%) to $2,184 million, with Crestor Product Sales in Japan stable at $521 million. Product Sales in Emerging Markets were flat (CER: up 6%) at $5,794 million in 2016 despite growth in China of 4% (CER: growth of 10%) to $2,636 million, as the Group encountered challenging macro-economic conditions in Latin America, where full-year 2016 Product Sales declined by 20% (CER: declined by 7%) to $516 million.

By Product

The largest selling products in 2016 were Crestor ($3,401 million), Symbicort ($2,989 million), Nexium ($2,032 million) and Pulmicort ($1,061 million). Global Product Sales of Crestor declined in 2016 by 32% (CER: declined by 32%), which primarily reflected the market entry of multiple Crestor generic medicines. Symbicort global Product Sales declined by 12% (CER: down 10%) including a reduction of 18% in the U.S. due to the impact of a competitive environment on net pricing. Nexium Product Sales were down 19% (CER: down 18%), including a 39% decrease in the U.S., reflecting lower demand and inventory de-stocking as a result of the loss of exclusivity in 2015. Strong underlying volume growth in Emerging Markets in 2016 drove a 5% Global Product Sales increase (CER: 8% increase) in Pulmicort, with 66% of Product Sales of the medicine coming from that region in 2016.

5

Growth Platforms

In addition tothe 2016 and 2015 periods, the Growth Platforms included products in three main therapy areas, and a focus on the Emerging Markets and Japan. The Growth Platforms grew by 4% (CER: 5%), representing 63% of Total Revenue after removing the effect of exchange rate fluctuations, the decrease incertain Product Sales which are included in 2015 was drivenmore than one Growth Platform.

Growth Platforms

(1)   New Oncology comprises Lynparza, Iressa (U.S.) and Tagrisso.

(2)   Certain Product Sales are included in more than one Growth Platform. Total Growth Platform sales represents the net total sales for all Growth Platforms.

Product Sales of Respiratory medicines in 2016 declined by 5% (CER: declined by 3%) reflecting pricing pressure in the U.S. market entryfor Symbicort. Sales ofNexiumBrilinta generic products from February 2015 as well asin 2016 were $839 million, an adverse impact fromincrease of 36% (CER: increase of 39%). SynagisBrilinta guideline changes in 2014 and the change in accounting for the U.S. Branded Pharmaceutical Fee, following issuance of final regulations in 2014. 2015 Product Salessales in the U.S. were down 6% with Europe down 19% (CER: down 6%), while Established ROWup 45% to $348 million in 2016, as it remained the branded oral anti-platelet market leader in the U.S. Diabetes Product Sales for 2016 were down 14%9% higher than in 2015 (CER: flat)11% higher), driven primarily by growth of 70% (CER: growth of 72%) on Farxiga with global sales of $835 million as it became the largest-selling Diabetes medicine. Product Sales in Emerging Markets for 2016 were flat compared to 2015 (CER: increase of 6%). Product Sales in China increased by 4% in 2016 (CER: increased by 10%) representing 45% of Emerging Markets Product Sales. Japan Product Sales increased by 8% in 2016 (CER: declined by 3%). Product Sales of New Oncology medicines were flat (CER: up 12%)to $664 million in 2016 (2015: $119 million), mainly driven by growth$423 million of which came from Tagrisso (2015: $19 million) which became the leading medicine for the treatment of lung cancer in China of 15% after removing exchange rate effects. Further details of our sales performance are contained2016.

Externalisation Revenue

Externalisation Revenue, alongside Product Sales, is included in Total Revenue. Externalisation Revenue includes development, commercialisation and collaboration revenue, such as royalties and milestone receipts. Income is recorded as Externalisation Revenue when the Group has a significant ongoing interest in the Geographicalproduct and/or it is repeatable business.

Details of significant business development transactions which give rise to Externalisation Revenue, are set forth in a table, under the heading “Strategic Report — Financial Review — Externalisation Revenue” on page 70 and under the heading “Strategic Report — Financial Review — Externalisation Revenue” on pages 22671 to 23072 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit  15.1 to this Form 20-F dated March 7, 2017.

In6, 2018. An analysis of Externalisation Revenue by transaction for 2016 and 2015 $1,067 million of Externalization Revenue was booked, of which $980 million related to milestones, including $450 million for durvalumab and $200 million forMovantik.is given below.

6

Gross margin, operating margin and earnings per share

Reported gross margin as a percentage of Product Sales in 2015 was 80.3%80.8%, 2.70.5 percentage points higher than 2014 due2015. Excluding the impact of Externalisation Revenue, the Reported gross margin was broadly flat compared to 2015 at CER, with lower restructuring and amortisation charges offset by an adverse impact from the mix of Product Salessales, the market entry of multiple Crestor generic medicines in the U.S. and manufacturing efficiencies. The Core gross margin as a percentagewrite-down of Product Sales increased by 1.3 percentage points.FluMist inventory in the U.S.

In 2016, Reported R&D expense in 20152016 was down 2% (CER: up 7%2%) to $5,890 million, as the Group continued its focused investment in the pipeline (CER: up 15%). Corepipeline. Adjusting for exchange rate movements, the full-year increase at CER reflected the number of potential medicines in pivotal trials as well as the inclusion of the R&D expense was up 13% (CER: up 21%) in 2015.costs of ZS Pharma and Acerta Pharma. These costs were partially offset by lower restructuring costs and impairment charges.

Reported expenditures in SG&A in 2015 were 15% lower than 2014 (CER: 8% lower). A number of ongoing programmes to reduce SG&A costs progresseddeclined by 15% in 2015.2016 (CER: declined by 12%) to $9,413 million reflecting the fair value adjustment to acquisition-related liabilities based on revised milestone probabilities and revenue and royalty forecasts relating to the acquisition of BMS’s share of the Global Diabetes Alliance and the acquisition of Almirall. The decline was also driven by the movement to a more even split between the sale of primary and specialty care medicines and efficiency savings in sales and marketing operations and further reductions in IT costs. These initiatives centred on: sales, marketing and medical cost effectiveness; centralization of selected functions and process improvements; reduced third party spend; additional efficiencies gained across support functions; and IT and continued footprint optimization, including presenceactions included a material reduction in the U.K.sales and head-office structure in the U.S. Core SG&A costs were down by 9% in 2015 (CER: down 2%).marketing business.

Net Reported other operating income in 20152016 was up 348%10% (CER: up 12%) at $1,500$1,655 million (CER: Up 35%). Inwhich, in addition to royalty income of $322$165 million other operating income in 2015 included $380for Crestor and $134 million for Human Papillomavirus (HPV) vaccine, includes $368 million on the sale of incomethe small-molecule antibiotics business to Pfizer, $321 million on the sale of non-U.S. rights to Rhinocort Aqua to Cilag, $183 million on the sale of non-U.S. rights to Imdur and $148 million (after deduction of $83 million payable to Amgen) on the disposal of global rights to MEDI2070 to Allergan. As these elements of income arose from product divestments, where the Group no longer retains a significant element of continued interest, in accordance with the Group’s Externalisation Revenue definition and the requirements of IFRS, proceeds from these divestments are recorded as other operating income.

In 2015, Reported other operating income included $380 million for the divestment of rights to the Entocort business in the U.S. rights toEntocort, Elan Pharma International Limited, part of the Perrigo Group, $215 million for the divestment of the rights to sell and develop Entocort capsules and enema formulations outside the U.S. to Tillotts Pharma AG, $193 million gain on the disposaldivestment of Rest of Worldthe global rights toEntocort, $193 million on the disposal of develop, manufacture and commercialise Myalept subject to an existing

7

distributor licence with Shionogi covering Japan, South Korea, and Taiwan with Aegerion and $165 million onfor the disposaldivestment ofCaprelsa. Net Core other operating income increased by 100% in 2015 (CER: increased 104%).an agreement with Genzyme Corporation, part of Sanofi S.A.

Reported operating profit of $4,114increased by 19% (CER: increased by 9%) to $4,902 million in 2015 was $1,977 million higher than in 2014.2016. The Reported operating margin in 2015 was 16.7%increased by 4.6 percentage points (CER: 2.6 percentage points) to 21.3% of Total Revenue. The increase reflected the reduction in SG&A costs which more than offset the decline in Product Sales and Externalisation Revenue, an increase of 8.7 percentage points from 2014.while the Group continued to invest in its pipeline and Growth Platforms.

Core operating profit declined by 3% (CER: declined by 7%) in 2016 to $6,721 million. Fair value adjustments to contingent considerationacquisition-related liabilities reduced SG&A costs and increased Reported operating profit by $432$1,158 million in 2015 (2014: fair value adjustments to contingent consideration reduced Reported operating profit by $5122016 (2015: $432 million). These fair value movements reflected estimates for future liabilities that can change materially over time. In addition, restructuring costs of $1,034 million in 2015 were significantly lower than restructuring costs of $1,558 million in 2014.

Core operating profit decreased by 1% in 2015 (CER: increased 6%). The Core operating margin increased by 1.8 percentage points to 27.9% of Total Revenue in 2015. The increase after exchange rate effects reflected the reduction in Core SG&A costs and the increase in Externalization Revenue and Core other operating income in 2015, while we continued to invest in our pipeline and Growth Platforms.

Reported net finance expense was $1,317 million (2015: $1,029 million) in 2015 was $1,029 million (2014: $885 million).2016. The increase of $144$288 million was largely due to an increase in Net Debt that was driven by increased charges related tothe acquisition of ZS Pharma and the majority investment in Acerta Pharma. Excluding the discount unwind on contingent consideration arising on business combinations drivenacquisition-related liabilities and other adjustments, Core Net Finance Expense increased by underlying increases31% (CER: increased by 46%) in the contingent consideration value held on the balance sheet in 2014 (including a full year’s discount unwind on the contingent consideration arising from our acquisition of BMS’s share of our Global Diabetes Alliance).2016 to $661 million.

Reported profitProfit before tax was $3,069amounted to $3,552 million in 2015. Core profit before tax was $6,397 million in 2015.

2016 (2015: $3,069 million). Pre-tax adjustments to arrive at Core profit before tax amounted to $3,312$2,475 million in 2015 (2014: $5,1922016 (2015: $3,312 million), comprising $2,788$1,819 million adjustments to operating profits (2014: $4,800(2015: $2,788 million) and $524$656 million to net finance expenses (2014: $392(2015: $524 million). Excluded from Core results for the financial year ending 31 December 2016 were:

·                  Restructuring costs totalling $1,107 million (2015: $1,034 million), incurred as the Group continues to enhance productivity through the implementation of its restructuring initiatives. To continue the focus on cost discipline, in 2016 the Group announced plans to advance its strategy through sharper focus by streamlining operations, primarily in Commercial and Manufacturing, to redeploy investment to key therapy areas, particularly Oncology. The Group incurred restructuring costs totalling $555 million relating to this programme in 2016. The Group also disposed of its R&D facility in Bangalore, India in 2016 and announced plans to bring together five of the San Francisco Bay Area, U.S. sites into one location.

·                  Amortisation totalling $1,247 million (2015: $1,460 million) relating to intangible assets, except those relating to IT and to the acquisition of BMS’s share of the Group’s Global Diabetes Alliance (which are separately detailed below). Further information on the intangible assets is set forth under the heading “Financial Statements — Notes to the Group Financial Statements — Note 9 — Intangible Assets” on pages 155 to 157 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018.

·                  Intangible impairment charges of $44 million (2015: $143 million) excluding those relating to IT. Further details relating to intangible asset impairments are set forth under the heading “Financial Statements — Notes to the Group Financial Statements — Note 9 — Intangible Assets” on pages 155 to 157 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018.

·                  A net credit associated with the acquisition of BMS’s share of the Group’s Global Diabetes Alliance in February 2015 amounting to $238 million (2015: net cost of $463 million). A 2016 contingent consideration fair value decrease of $999 million reflecting lower expected Diabetes portfolio revenues in line with latest forecasts was partially offset by $372 million of amortisation charges and $389 million of interest charges relating to a discount unwind on contingent consideration arising on the acquisition.

·                  Net legal provisions and other charges of $315 million (2015: $211 million), including $267 million discount unwind charges, offset by $199 million of net fair value adjustments relating to contingent consideration arising on other business combinations as detailed under the heading “Financial Statements — Notes to the Group Financial Statements — Note 18 — Trade and other payables” on page 163 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018.  The net charge of $315 million also included legal charges relating to the unsuccessful defence of the validity of Crestor-related patents in Australia, damages claims in Europe relating to Seroquel XR and other matters. Further details of legal proceedings the Group is currently involved in are set forth under the heading “Financial Statements — Notes to the Group Financial Statements — Note 28 — Commitments and contingent liabilities” on pages 182 to 188 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018.

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Reported EPS of $2.77 in 2016 represented growth of 24% (CER: growth of 9%), partly reflecting the revaluation of acquisition-related liabilities described above. Core EPS in 2016 increased by 1% (CER: declined by 5%) to $4.31. The CER decline of 5% mirrored the rate of decline in Total Revenue. Both Reported and Core EPS in 2016 included a non-recurring benefit of $0.36, following agreements between the Canadian tax authority and the U.K. and Swedish tax authorities.

The Reported taxation charge for 20152016 of $243$146 million (2014: $11(2015: $243 million) consisted of a current tax charge of $633$370 million (2014: $872(2015: $633 million) and a credit arising from movements on deferred tax of $390$224 million (2014: $861(2015: $390 million). The current tax charge in 2015 included a prior period current tax credit of $404$14 million (2014: $109(2015: $404 million).

The Reported tax rate for 20152016 was 4% (2015: 8%). ThisThe Reported tax rate of 4% benefited from a $453 million adjustment following agreements between the Canadian tax authority and the U.K. and Swedish tax authorities. Excluding these effects, the Reported tax rate for 2016 was impacted by17%. The Core tax rate for 2016 was 11%. Excluding the benefit following agreements between the Canadian tax authority and the U.K. and Swedish tax authorities in respect of transfer pricing arrangements for the 13-year period from 2004-2016, the Core tax rate was 18%.

The tax paid for 2016 was $412 million (12% of Reported profit and 7% of Core profit). The cash tax paid in 2016 was $266 million higher than the tax charge for that year as a one-off benefitresult of $186certain items with no cash impact including a $453 million adjustment following the agreement of U.S. federalbetween the Canadian tax liabilities of open years upauthority and the U.K. and Swedish tax authorities referred to 2008,above, other net reductions in provisions for tax contingencies partially offset by the impact of internal transfers$52 million, $244 million of intellectual property resulting in adeferred tax credits, net credit of $181 million and revaluations of contingent consideration arising on business combinations (credit of $432 million with related tax charge of $39 million). Excluding these effects, the Reported tax rate for the year would have been 22%. The Core tax rate for 2015 was 16%. Excluding the benefitcash refunds received following agreement of U.S. federalprior period tax liabilities and audit settlements of open years up to 2008$274 million and other net reductions in provisions forcash tax contingencies partially offset by the impact of internal transfers of intellectual property, the Core tax rate would have been 21%.timing differences.

The tax paid in 2015 was $1,354 million, which was 44% of Reported profit and 21% of Core profit. Reported post-tax profit for 20152016 was $2,826$3,406 million,an increase of 129%21% (CER: increase of 137%6%).

Reported earnings per share was up 128 %24% (CER: Up 137%up 9%) to $2.23. Core EPS was $4.26 in 2015, flat compared with 2014 (CER: increase of 7%).$2.77.

Total comprehensive income increaseddecreased by $2,759$860 million infrom 2015, compared to 2014, resulting in a net income of $2,488$1,628 million for 2015.2016. This increase in 2015 was driven by the increase in profit for 2016 of $1,591$580 million and an increasebeing more than offset by a reduction of $1,168$1,440 million in other comprehensive income. The increasedecrease in other comprehensive income in 2015 arose principally from gainslosses recorded on the remeasurement of ourthe defined benefit pension liability of $652$575 million (2014: losses(2015: gains of $766$652 million) due to an increasea decrease in the discount rate applied to our pension liabilities reflecting an increase in corporate bond yields and other reference interest rate instruments.instruments, and foreign exchange losses arising on consolidation of the Group numbers of $1,050 million (2015: losses of $528 million) as a result of the strong performance of the U.S. dollar against other major currencies in 2016.

Cash flow and liquidity – 2015— 2016

Net cash generated from operating activities was $3,324$4,145 million in the year ended 31 December 2015,2016, compared with $7,058$3,324 million in 2014. Working capital increased by2015. The increase of $821 million reflected improved cash management performance and one-off tax refunds in 2016 compared to an increase of $49 million in 2015. This compared to a decline of $2,508 millionworking capital and short-term provisions in 2014 which was driven by a significantly higher level of rebate accruals in the U.S., the phasing of costs increasing accruals in the fourth quarter of 2014 and the accrual of an additional year’s U.S. Branded Pharmaceutical Drug Fee following the change of regulations in 2014. In 2015, the liabilities in relation to these items normalised and, in addition, rebate accruals were further reduced following the loss of exclusivity forNexium.2015.

Gains on disposal of intangible assets of $1,301 million in 20152016 included $368 million on the disposal of $961the late-stage antibiotics business, $321 million on the sale of the Group’s rights to Rhinocort Aqua outside of the U.S., $231 million on the out-licence agreement for MEDI-2070, and $183 million for the divestment of the global rights to Imdur outside the U.S. 2015 included $380 million on the disposal of U.S. rights toEntocort, $215 million on the disposal of Rest of World rights toEntocort, $193 million on the disposal of global rights toMyalept and $165 million on the disposal of global rights toCaprelsa. Non-cash and other movements decreased operating cash by $782 million in 2015 and included $432 million relating to fairFair value adjustments on contingent consideration arisingacquisition-related liabilities were a credit of $1,158 million in 2016 (2015: a credit of $432 million) including $999 million on business combinations (2014: increased operating cash by $865the acquisition of BMS’s share of the Group’s Global Diabetes Alliance in February 2015. Other non-cash movements amounted to $492 million including $512 million increase on contingent consideration arising on business combinations)in 2016 (2015: $350 million).

Investment cash outflows of $4,681$3,703 million in 2015 (2014: $7,125(2015: $4,681 million) included $2,446$2,383 million relating to the acquisition of ZSmajority investment in Acerta Pharma. This compared to cash payments relating to business acquisitions in 20142015 of $4,461$2,446 million, primarily related to the BMS diabetes allianceZS Pharma acquisition. Further details of business combination acquisitions and Almirall acquisitions.their impact on the Group’s cash flows and balance sheet are set forth under the heading “Financial Statements — Notes to the Group Financial Statements — Note 25 — Acquisitions of business operations “ on pages 173 to 174 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018. Investment cash outflows in 2015 also includedinclude $293 million (2015: $579 million (2014: $657 million) of payments against contingent consideration arising on business combinations and $1,460$868 million (2014: $1,740(2015: $1,460 million) for the purchase of other intangible assets, which included

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$561 million on the purchase of the core respiratory assets of Takeda. The comparative period of 2015 included $684 million on the acquisition of the rights to Actavis’ branded respiratory portfolio in the U.S. and Canada. The comparative period of 2014 included a $409 million payment to Merck on the consummation of our Second Option and $310 million on the settlement of pre-existing launch and sales-related milestones with BMS.

Investment cash inflows in 2015 includedinclude $1,427 million (2015: $1,130 million (2014: $nil)million) from the sale of intangible assets, including $552 million for the disposal of the late-stage antibiotics business, $330 million for the sale of the Group’s rights to Rhinocort Aqua outside of the U.S. and $250 million on the out-licence agreement for MEDI-2070. The comparative period in 2015 included the divestments ofEntocort in the U.S. for $380 million, and in the Rest of World for $215 million and ofMyalept for $325 million. Further details of the divestments giving rise to our investment cash inflows are set forth under the heading “Strategic Report—Financial Review—Financial position – 31 December 2016—Investments, divestments and capital expenditure” on page 75 of theCompany’s “Annual Report and Form 20-F Information 2016” included as exhibit 15.1 to this Form 20-F dated March 7, 2017.

Net cash distributions to shareholders were $3,443$3,514 million in 2015 (2014: $3,242(2015: $3,443 million) including dividends of $3,486$3,561 million (2014: $3,521(2015: $3,486 million). Proceeds from the issue of shares on the exercise of share options amounted to $43$47 million (2014: $279(2015: $43 million).

In May 2016, the Group issued €2.2 billion of bonds in the euro debt capital markets with maturities of 5, 8 and 12 years. The bonds are listed in a table under the heading “Strategic Report — Financial Review — Cash flow and liquidity for the year ended 2017 — Bonds issued in 2017 and 2016” on page 74 of AstraZeneca’s “Annual Report and Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018. In November 2015, the Group issued bonds worth $6 billion to fund the acquisition of ZS Pharma, to repay certain of ourthe Group’s outstanding commercial paper obligations and for general corporate purposes.

In 2015, the Group also repaid a 5.125% non-callable euro bond which had a 31 December 20142015 carrying value of $912 million.

At 31 December 2015,2016, outstanding gross debt (interest-bearing loans and borrowings) was $15,053$16,808 million (2014: $10,843(2015: $15,053 million). Of the gross debt outstanding at 31 December 2015, $9162016, $2,307 million wasis due within one year (2014: $2,446(2015: $916 million). Net debt at 31 December 20152016 was $7,762$10,657 million, compared to $3,223$7,762 million at 31 December 2014,2015, as a result of the net cash outflow as described above.

Financial position – 2015— 31 December 2016

In 2015,2016, net assets decreased by $1,137$1,840 million to $18,509$16,669 million. The decrease in net assets was broadly as a result of dividends of $3,537$3,540 million and adverse movements on exchange taken to reserves of $861$1,641 million, partially offset by the Group profit of $2,826$3,406 million.

Business combinations

In 2016, the Group acquired a majority equity stake in Acerta Pharma. In 2015, weAstraZeneca completed the acquisition of ZS Pharma. In 2014, we completed the acquisition of BMS’s share of our Global Diabetes Alliance, the acquisitionFurther details of the rightsbusiness combinations are set forth under the heading “Financial Statements — Notes to Almirall’s respiratory franchisethe Group Financial Statements — Note 25 — Acquisitions of business operations” on pages 173 to 174 of AstraZeneca’s “Annual Report and the acquisition of the Definiens Group.Form 20-F Information 2017” included as exhibit 15.1 to this Form 20-F dated March 6, 2018.

Property, plant and equipment

Property, plant and equipment increased by $403 million to $6,413$435 million in 2015.2016 to $6,848 million. Additions of $1,449 million (2015: $1,422 million in 2015 (2014: $1,607 million), including $21 million (2014: $515 million) arising from business combinations, were offset by depreciation of $677$609 million (2014: $776(2015: $677 million), impairments of $2 million (2015: $28 million (2014: $nil)million) and disposals of $70$74 million (2014: $582(2015: $70 million).

Goodwill and intangible assets

The Group’s goodwillGoodwill of $11,800million as$11,658 million at 31 December 2015 (2014: $11,5502016 (2015: $11,800 million) principally arose on the acquisition of MedImmune in 2007, the restructuring of ourthe U.S. joint venture with Merck in 1998 and the acquisition of BMS’s share of the Global Diabetes Alliance. Goodwill of $388$19 million was recordedarising on the acquisition of ZS Pharma.Acerta Pharma was capitalised in 2016.

Intangible assets amounted to $22,646$27,586 million at 31 December 2015 (2014: $20,9812016 (2015: $22,646 million). Intangible asset additions were $4,640$8,205 million in 2015 (2014: $8,5482016 (2015: $4,640 million), including product rights acquired in the acquisition of Acerta Pharma of $7,307 million ($3,162 million on the acquisition of ZS Pharma of $3,162 million (2014: $7,501 million on 2014 business combinations)in 2015). Amortisation in 20152016 was

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$1,701 million (2015: $1,999 million (2014: $2,384 million). Impairment charges in 20152016 amounted to $148$45 million (2014: $122(2015: $148 million), including $64$15 million for AMP-110 and $35 million forArdelyx.RDEA119. Disposals of intangible assets totalled $169$331 million in 2015 (2014: $nil) including $123 million on the sale of global rights toMyalept2016 (2015: $169 million).

Further details of our additions to intangible assets, and impairments recorded, are set forth under the heading “Financial Statements—Statements — Notes to the Group Financial Statements—Statements — Note 9—9 — Intangible assets” on pages 155 to 157 to 159 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 2017.6, 2018.

Receivables, payables and provisions

Trade and other receivables decreased by $815$2,055 million in 20152016 with trade receivables reduced by $129$2,050 million to $4,633$2,583 million as a result of more factored invoices during 2016 and prepayments and accrued income increasing by $20 million.lower gross invoiced sales in the U.S. Non-current other receivables decreased by $205$6 million in 2015 to $907$901 million, driven by a reduction in the ShionogiCrestor royalty prepayment.

Trade and other payables decreasedincreased by $757$854 million in 20152016 to $19,120$19,974 million, including $223a $1,901 million lowerput option, and $1,332 million deferred consideration on the majority investment in Acerta Pharma, partially offset by reductions in contingent consideration of $954 million, a decrease in trade payables of $479 million, and a decrease of $495 million on rebates and chargebacks and $571 milliondriven by reduced Product Sales in other non-current payables. Non-current payables in 2015 includes the long-term element of contingent consideration, which as indicated above, included an adjustment of $432 million to the total fair value in 2015, and the accrual for our minimum committed ShionogiCrestor royalty payments.U.S.

The increase in provisions of $135$176 million in 20152016 included $706$988 million of additional charges recorded in the year,2016, partially offset by $557$686 million of cash payments. Included within the $706$988 million of charges for 20152016 were $338$578 million for ourthe global restructuring initiatives and $313$223 million in respect of legal charges. Cash payments in 2015 included $408$433 million for ourthe global restructuring programmes.

Tax payable and receivable

Net income tax payable decreased by $929$142 million to $954 million in 2015 to $1,096 million,2016, principally due to a $186$453 million adjustment following agreement of U.S. federalagreements between the Canadian tax liabilities of open years up to 2008, other net reductions in provisions forauthority and the U.K. and Swedish tax contingencies ($259 million), cash payments madeauthorities in respect of transfer pricing arrangements for the 13-year period from 2004-2016, partially offset by net cash refunds received following agreement of the 2015 tax liabilities and audit settlements ($240 million) and foreign exchange ($194 million).of $274 million. The tax receivable balance of $426 million at 31 December 2016 (2015: $387 million in 2015 (2014: $329 million) comprisedcomprises tax owing to AstraZenecathe Group from certain governments expected to be received on settlements of transfer pricing audits and disputes ($192 million)of $161 million and cash tax timing differences ($195 million). of $265 million.

Net deferred tax liabilities increased by $794$1,483 million in 20152016 mainly due to deferred tax liabilities arising from the acquisition of ZSAcerta Pharma.

Retirement benefit obligations

Net retirement benefit obligations decreasedincreased by $977$212 million in 2015 (2014: increase2016 (2015: decrease of $690$977 million). Employer to $2,186 million. Net remeasurement adjustments of $575 million in the U.K., Sweden and Germany arising from reductions in discount rate assumptions were partially offset by a $312 million impact of exchange rate movements in 2016 as the U.S. dollar strengthened against pound sterling, euro and Swedish krona and employer contributions to the pension scheme of $402 million, net remeasurement adjustments of $652 million driven by an increase in the discount rate applied to our pension liabilities under IAS 19 and beneficial exchange movements of $182 million were offset by service cost charges of $167 million and net financing costs of $77$192 million. Benefits paid in 2015 amounted to $580$500 million (2014: $571(2015: $580 million).

Developments in Legal Proceedings

For information in respect of material legal proceedings in which the CompanyAstraZeneca is currently involved, including those discussed below, please see the information (including tabular data) set forth under the heading “Financial Statements—Notes to the Group Financial Statements—Note 28—Commitments and contingent liabilities” on pages 185182 to 191188 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 2017.6, 2018.

The proceedings discussed below are provided to supplement and update the corresponding disclosure in the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017”. Unless noted below or in the Company’sAstraZeneca’s “Annual Report on Form 20-F Information 2016”2017”, no provisions have been established in respect of these proceedings.

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Patent litigation

FaslodexBrilinta ((fulvestrant)ticagrelor)

U.S. patent proceedings

In 2015, in response to Paragraph IV notices from multiple ANDA filers, AstraZeneca has filed patent infringement lawsuits in the U.S. District Court in New Jerseyfor the District of Delaware (the District Court)“District Court”) relating to patents listed in the FDA Orange Book with reference toFaslodexBrilinta after AstraZeneca received seven Paragraph IV notices relating to six ANDAs seeking FDA approval to market generic versions ofFaslodex prior to the expiration of AstraZeneca’s patents.. In February 2017,2018, AstraZeneca received an additional Paragraph IV notice relatingentered into separate settlements with a number of the ANDA filers and the District Court entered consent judgments to a seventh ANDA and filed an additional lawsuitdismiss several of the litigations. AstraZeneca continues to litigate in the District Court. InCourt against additional ANDA filers. Trials are scheduled for March 2017, AstraZeneca received a Paragraph IV notice regarding an NDA submitted pursuant to 21 U.S.C. § 355(b)(2) by Teva Pharmaceuticals USA, Inc. relating to the same Orange Book-listed patents.

In February 2017, AstraZeneca was served with three petitions forinter partesreview by the Patent Trial and Appeal Board relating to Orange Book-listed patents with reference toFaslodex.April 2018.

Crestor (rosuvastatin calcium)

Patent proceedings outside the U.S.

In Germany,Australia, AstraZeneca has taken a provision in respect of damages claims from generic entities and the Federal Patent Court declared European Patent No. EP 1250138 (the ‘138 patent)Commonwealth of Australia in relation to alleged losses suffered in connection with AstraZeneca’s enforcement of Crestor patents which were subsequently found invalid. AstraZeneca intends to appeal. In February 2017,2018, AstraZeneca settled the Regional Courtclaim from Apotex Pty Ltd (and other related Apotex entities). The claims from all generic entities have now been settled. The claim from the Commonwealth of Mannheim lifted a provisional injunction based on a divisional patent of the ‘138 patent, European Patent No. EP 2266573 which had been in place against Hexal AG since February 2016.Australia remains outstanding.

Pulmicort Respules (budesonide inhalation suspension)

U.S. patent proceedings

In February 2015, the U.S. District Court for the District of New Jersey (the “District Court”) determined that the asserted claims of U.S. Patent No. 7,524,834, which covered Pulmicort Respules, were invalid following challenges brought by Apotex, Inc., Apotex Corp., Breath Limited, Sandoz, Inc. and Watson Laboratories, Inc. (together, the “Generic Challengers”). In May 2015, the U.S. Court of Appeals for the Federal Circuit affirmed the District Court’s decision. Since 2009, various injunctions were issued in this matter. Damages claims based on those injunctions have been filed by the Generic Challengers and a trial for the damages claims is scheduled for May 2018. A provision has been taken.

Losec/Prilosec (omeprazole)

Patent proceedings outside the U.S.

In Canada, in 2004, AstraZeneca brought proceedings against Apotex, Inc. (“Apotex”) for infringement of several patents related to Losec. In February 2015, the Federal Court of Canada (the “Federal Court”) found that Apotex had infringed the Losec formulation patent (Canadian Patent No. 1,292,693). In July 2017, after a reference to account for Apotex’s profits earned as a result of the infringement, the Federal Court issued its decision describing how the quantification of monies owed to AstraZeneca should proceed. Apotex appealed. In February 2018, AstraZeneca and Apotex entered into a settlement agreement, under which Apotex agreed to pay AstraZeneca CAD 435 million (U.S.$ 352 million), concluding all Losec patent litigation in Canada.

Product liability litigation

Onglyza(saxagliptin) andKombiglyze(saxagliptin and metformin)

In the U.S., AstraZeneca initiated patent infringementis defending various lawsuits alleging heart failure, cardiac injuries, and/or death from treatment with Onglyza or Kombiglyze. In February 2018, the Judicial Panel on Multidistrict Litigation ordered the transfer of various pending federal actions to the Eastern District of Kentucky (the “District”) for consolidated pretrial proceedings against variouswith the federal actions pending in the District. The previously disclosed California state court co-ordinated proceeding remains pending in California.

Commercial litigation

Array BioPharma

In the U.S., in December 2017 and February 2018, AstraZeneca was served with complaints filed in New York state court by Array BioPharma, Inc. (“Array”) that alleged, among other things, breaches of contractual obligations relating to a 2003 collaboration agreement between AstraZeneca and Array.

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Telephone Consumer Protection Act litigation

In the U.S., in December 2016, AstraZeneca and several other entities were served with a complaint filed in the U.S. District Court for the Southern District of Delaware (the District Court) after those entities had submitted ANDAs containing a Paragraph IV Certification allegingFlorida that U.S. Patent No. RE44,186 (the ‘186 Patent), listed inalleges, among other things, violations of the FDA Orange Book with reference toOnglyza andKombiglyze XR, is invalid and/or will not be infringedTelephone Consumer Protection Act caused by the products as described in their ANDAs. In February 2017, the District Court issued a decision upholding the validitysending of the ‘186 Patent.

Crestor (rosuvastatin calcium)

Patent proceedings outside the U.S.

In Spain, in February 2017, in response to a marketing declaration from ratiopharm España, S.A. (ratiopharm) regarding its version of rosuvastatin zinc, AstraZeneca requested and received an interim injunction against the launch of ratiopharm's product from the Commercial Courts of Barcelona.

Product liability litigation

Farxiga(dapagliflozin)

In the U.S., AstraZeneca has been named as a defendant in lawsuits involving plaintiffs claiming physical injury, including diabetic ketoacidosis and kidney failure, from treatment withFarxiga and/orXigduo XR. Cases with these allegations have been filed in several jurisdictions. In October 2016, one of these cases was dismissed with prejudice in favour of AstraZeneca. Since then, several other cases have been dismissed either voluntarily orunsolicited advertisements by the courts. Motions to dismiss are pending in many of the jurisdictions where AstraZeneca has been served. In February 2017, plaintiffs filed a motion with the Judicial Panel on Multidistrict Litigation seeking transfer of any currently pending cases as well as any similar, subsequently filed cases to a coordinated and consolidated pre-trial multidistrictfacsimile. The litigation proceeding.

Nexium(esomeprazole) andPrilosec(omeprazole)

AstraZeneca is defending various lawsuits in the U.S. involving multiple plaintiffs claiming that they have been diagnosed with kidney injuries following treatment with proton pump inhibitors, includingNexiumandPrilosec. In October 2016, counsel for some of these plaintiffs filed a motion with the Judicial Panel on Multidistrict Litigation (JPML) seeking transfer of any currently pending federal court cases as well as any similar, subsequently filed cases to a coordinated and consolidated pre-trial multidistrict litigation proceeding. In February 2017, the JPML denied this motion.ongoing.

Onglyza(saxagliptin) andKombiglyze(saxagliptin and metformin)

AstraZeneca is defending claims brought by plaintiffs alleging heart failure, cardiac failure and/or death from treatment with eitherOnglyza orKombiglyze. In February 2017, the California Superior Court granted certain California plaintiffs' Petition for Coordination with the Judicial Council of California, requesting that all similar, currently pending or subsequently filed cases in California state court be coordinated for pre-trial purposes.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

The information (including tabular data) set forth under the headings Corporate Governance—Corporate Governance Overview—Board of Directors” on pages 88 and 89 and “—Senior Executive Team” on pages 86 to 8990 and 91 and “Corporate Governance—Annual Report on Remuneration—Service contracts”Governance—Directors’ service contracts and letters of appointment” on page 117,125, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

No Director has a family relationship with any other Director.

Changes to the Company’s Board of Directors

On March 6, 2017 AstraZeneca announced that Philip Broadley will be proposed to shareholders for election as a Non-Executive Director of AstraZeneca at the Company’s Annual General Meeting on April 27, 2017. On election, the Board proposes to appoint Mr Broadley as a member of the Audit Committee.

Mr Broadley has significant financial and international business experience, having previously been Group Finance Director of Prudential plc for eight years until 2008 and of Old Mutual plc for six years until 2014. He started his career at Arthur Andersen where he was a partner for seven years. He is a past Chairman of the 100 Group of Finance Directors in the U.K. and a Fellow of the Institute of Chartered Accountants in England and Wales. He graduated in Philosophy, Politics and Economics from St Edmund Hall, Oxford and has an MSc in Behavioural Science from the London School of Economics. Mr Broadly is a Non-Executive Director of Legal & General Group plc and chairs its Audit Committee. He is a member of the Code Committee of the U.K. Takeover Panel. He is a member of the Oxford University Audit Committee, Treasurer of the London Library and a governor of Eastbourne College.

Also on March 6, 2017 AstraZeneca announced that Ann Cairns will retire from the AstraZeneca Board and as a member of the Audit Committee with effect from the end of the AGM on April 27, 2017.

B. Compensation

The information (including graphs and tabular data) set forth under the headings “Corporate Governance—Directors’ Remuneration Report”, “— on pages 105 to 107, “Corporate Governance—Annual Report on Remuneration”, “—Remuneration Policy”, “—Remuneration Policy for Executive Directors” and “—Remuneration Policy for Non-Executive Directors” on pages 103105 to 132,125, “Financial Statements—Notes to the Group Financial Statements—Note 20—Post-retirement benefits” on pages 165164 to 171,170, “—Note 27—Employee costs and share plans for employees” on pages 182179 to 184181 and “—Note 30—Statutory and other information—Key management personnel compensation”, on page 192,189, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

C. Board Practices

The information (including graphs and tabular data) set forth under the headings “Corporate Governance—Corporate Governance Overview”, on page 87, “Corporate Governance—Board of Directors” on pages 84 to 85,88 and 89, “Corporate Governance—Senior Executive Team (SET)” on pages 90 and 91, “Corporate Governance—Corporate Governance Report—Remuneration” on page 93, “—Leadership and responsibilities” on page 90,92, “—Board effectiveness” on pages 9093 to 92,94, “—Remuneration” on page 96, “—Nomination and Governance Committee” on page 93 ,96 “—Science Committee” on pages 93 and 94,page 97, “—Business Organisation—Global Compliance and Internal Audit Services (IA)” on page 95,pages 97 and 98, “Corporate Governance—Senior Executive Team” on pages 88 to 89, “Corporate Governance—Annual Report on Remuneration—Service contracts”Directors’ Remuneration Report—Directors’ service contracts and letters of appointment” on page 117, “Corporate Governance—Remuneration Policy for Non-Executive Directors” on page 132,125 and “Corporate Governance—Audit Committee Report” on pages 98100 to 102,104, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

D. Employees

The information set forth under the headings “Strategic Report—ResourcesBusiness Review—1. Achieve Scientific Leadership—R&D resources” (other than “R&D spend analysis”) on page 25, “—2. Return To Growth—Operations” on pages 30 and 31, “—2. Return To Growth—Information technology and information services resources” on page 33,  “—3. Be A Great Place To Work—Employees” (comprising the graphical data on page 55,36, and the “Managing change” and “Employee relations” sections on page 5737 only), “—Manufacturing”, “—R&D resources (other than “R&D spend analysis”) and “—Information technology and information services resources” on pages 54 to 60, and “Financial Statements—Notes to the Group Financial Statements—Note 27—Employee costs and share plans for employees—Employee costs” (including the tabular data) on page 182,179, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

E. Share Ownership

The information (including graphs and tabular data) set forth under the headings “Financial Statements—Notes to the Group Financial Statements—Note 27—Employee costs and share plans for employees” on pages 182179 to 184,181, “Corporate Governance—Corporate Governance Report—Other matters—Directors’ shareholdings” on page 97,99, “Corporate Governance—Annual Report on Remuneration—Directors’ interests in shares (Audited)”shares” on pages 114 and 115,116 to 117, and “Additional Information—Shareholder Information—Options to purchase securities from registrant or subsidiaries”

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on page 234,231, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

The information set forth under the heading “Additional Information—Shareholder Information—US holdings” and “—Major shareholdings” (including tabular data) on pages 233 to 234page 230 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

B. Related Party Transactions

The information set forth under the headings “Financial Statements—Notes to the Group Financial Statements—Note 30—Statutory and other information—Related party transactions” on page 192 and189, “Additional Information—Shareholder Information—Related party transactions” on page 234,231, “—Issued share capital, shareholdings and share prices” on page 229, “—US holdings” on page 230 and “—Major shareholdings” on page 230, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

C. Interests of Experts and Counsel

Not applicable.

ITEM 8. FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

Please see the information below under the heading Item 18 –— “Financial Statements.” The information (including graphs and tabular data) set forth under the headings “Additional Information—Shareholder Information” on pages 232228 to 236,233, “Strategic Report—Financial Review—Financial position – position—31 December 2016—2017—Capitalisation and Shareholder Return—Dividends for 2017” and “—Dividend and share repurchases” on page 7678 and “Corporate Governance—Corporate Governance Report—Other matters—Distributions to shareholders –— dividends for 2016”2017” on page 96,98, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

B. Significant Changes

Please see the information above under the heading Item 5 –— “Operating and Financial Review and Prospects—Developments in Legal Proceedings” for information as to recent developments in certain legal proceedings disclosed under the heading “Financial Statements—Notes to the Group Financial Statements—Note 28—Commitments and contingent liabilities” on pages 185182 to 191188 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 2017.6, 2018.

Other than as disclosed herein,in this Item, since the date of the annual consolidated financial statements included in this Form 20-F dated March 7, 2017,6, 2018, no significant change has occurred.

ITEM 9. THE OFFER AND LISTING

A. Offer and Listing Details

The information (including tabular data) set forth under the heading “Additional Information—Shareholder Information—AstraZeneca PLC share listings and prices”Ordinary shares in issue” on page 232229 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

In addition, the table below sets forth, for the periods indicated, the reported high and low share prices of AstraZeneca PLC,the Company, on the following bases:

·                  for shares listed on the London Stock Exchange (LSE) the reported high and low middle market closing quotations are derived from the Daily Official List;

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·                  for shares listed on the Stockholm Stock Exchange (SSE) the high and low closing sales prices are as stated in the Official List; and

·                  for American Depositary Shares (ADS) listed on the New York Stock Exchange the reported high and low sales prices are as reported by Dow Jones (ADR quotations).

(1)         Effective as of July 27, 2015, the Company changed the ADS ratio from one ADS per one ordinary share to two ADSs per one ordinary share. The prices per ADS listed in this item 9.A for any dates or periods prior to such date have been retroactively adjusted to reflect this ratio change.

B. Plan of Distribution

Not applicable.

C. Markets

The information (including tabular data) set forth in the introductory paragraph under the heading “Additional Information—Shareholder Information—AstraZeneca PLC share listings and prices”Information” on page 232228 and “—Issued share capital, shareholdings and share prices”

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on page 229 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

The information set forth under the heading “Additional Information—CorporateShareholder Information—Articles”Articles of Association” on page 237231 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

C. Material Contracts

Not applicable.

D. Exchange Controls

The information set forth under the headings “Additional Information—Shareholder Information—Exchange controls and other limitations affecting security holders” on page 236233 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

E. Taxation

The information set forth under the headings “Additional Information—Shareholder Information—Taxation Tax information for US persons”, “—UK and US income taxation of dividends”, “—Taxation on capital gains”, “—Passive Foreign Investment Company (PFIC) rules”, “—Information reporting and backup withholding”, “—UK inheritance tax” and “—UK stamp duty reserve tax and stamp duty”shareholders” on pages 234232 to 236233 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

The information set forth under the heading “Additional Information—Shareholder Information—Documents on display” on page 234232 of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F20- F dated March 7, 20176, 2018 is incorporated by reference.

In addition, we file reports and other information with the United States Securities and Exchange Commission (the “SEC”). You can read and copy these reports and other information at the SEC’s Public Reference Room at 100

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F Street, N.E., Washington, D.C. 20549. You can call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. The SEC also maintains a website at www.sec.gov which contains in electronic form each of the reports and other information that we have filed electronically with the SEC.

I. Subsidiary Information

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information (including graphs and tabular data) set forth under the headings “Strategic Report—Financial Review—Financial risk management” on pages 76 to 77page 79 and “Financial Statements—Note 26—Financial risk management objectives and policies” on pages 177175 to 181,179, in each case of the Company’sAstraZeneca’s “Annual Report and Form 20-F Information 2016”2017” included as exhibit 15.1 to this Form 20-F dated March 7, 20176, 2018 is incorporated by reference.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

Not applicable.

B. Warrants and Rights

Not applicable.

C. Other Securities

Not applicable.

D. American Depositary Shares

Fees and Charges Payable by ADR Holders

The Company’s American Depositary Receipt (“ADR”) program is administered by Citibank, N.A. (“Citibank” or the “Depositary”), as the depositary. Citibank succeeded JPMorgan Chase Bank, N.A. (“J.P. Morgan), the predecessor depositary, on February 6, 2015. The holder of an ADR may have to pay the following fees and charges to Citibank in connection with ownership of the ADR:

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