2013 Health & Welfare and Retirement Benefits Program

1. 2013 Health & Welfare and Retirement Benefits Program

2. HEALTH & WELFARE BENEFITS

3. AstraZeneca’s Benefit Programs • AstraZeneca is committed to providing employees and their families with a highly competitive benefits package to meet their needs • AstraZeneca strives to provide programs that support healthy lifestyles • AstraZeneca is committed to: • Prevention – taking care of your health before you need to take corrective action • Quality – committing to accountability through quality measures with healthcare providers and facilities that demonstrate favorable outcomes • Adherence – following prescribed medical and drug treatment programs

4. “Who is eligible for benefits?” • Full-time employees • Part-time employees working at least 18.75 hours per week • Your legal spouse • Your children up to age 26 (or disabled children beyond age 26 if disabled prior to age 26) • Your domestic partner and his/her dependent children • Relationship must be in place for one year • Children must be primarily dependent on DP and reside with EE and DP • Some restrictions apply, refer to the on-line guide

5. Health & Welfare Benefits

6. “What should I do first?” • Consider the following: • Healthcare needs • Healthcare expenses from previous years • Do you prefer to pay more up-front, in higher premiums? Or when you receive care? • How involved are you in managing your healthcare • Ability to choose doctors and hospitals • Other sources of coverage (spouse’s employer)

7. “What are my medical plan options?” • Medical Plan Options • CIGNA Choice Fund • 2 PPO/POS Plans – Core Option & Buy-Up Option • HMO/EPO Plan • Out of Area Plan • Three coverage levels • No Coverage • If you select “No Coverage”, you will receive $600 cash back annually in your paycheck. • Does not apply if covered as a dependent (i.e., married to an AstraZeneca employee)

8. CIGNA Choice Fund In-network and out-of-network benefits You can choose any provider, but you will save money with in-network providers

9. CIGNA Choice Fund: “What’s an HRA?” • Health Reimbursement Account (HRA) • Tax-free account funded by the company • Automatically pays for your eligible medical out-of-pocket expenses (Prescription, dental, and vision expenses are covered by separate plans). • You don’t pay out-of-pocket until funds in the HRA are used up • The Company contributes: • Employee only: $750 • Employee + one: $1,500 • Employee + family: $2,250

10. Carlos (end of year 1) Carlos – End of Year 1 Single, 35 , works hard, plays hard, healthy, occasional sports injury Employee only coverage 1 Carlos had these expenses: $300 annual exam $ 70 urgent care doctor visit $160 sports medicine visit $165 for knee splint $695 total medical expenses 100% after $2,500 (in-network) Carlos’ Coinsurance20% 2 Out-of-Pocket Max How expenses are paid: $300 annual exam - covered 100% by plan (in-network, preventive) $ 70 urgent care doctor visit – paid from HRA $160 sports medicine visit – paid from HRA $165 for knee splint – paid from HRA $695 paid by Plan $ 0 paid by Carlos Deductible $1,500 Carlos’ Share$750 100% Preventive Care(in-network) $395 Deductible HRA$750 $750 - $395 = $355 HRA Balance; Rolls over to next year’s HRA 3

11. PPO/POS Plans • Plan administrator depends on your zip code • In-network and out-of-network benefits • You can choose any provider, but you will save money with in-network providers • No Primary Care Physicians (PCPs) or referrals needed

12. PPO Options Buy-up option: $200 annual copay applies for inpatient hospital ($400 out of network) *Once out-of-pocket limit is met, the plan pays 100% of eligible expenses

13. HMO/EPO Plan • Whether you have access to an HMO/EPO depends on your zip code • Must use in-network providers • PCPs and referrals not required • $10 copay for office visits; $15 copay for specialist visits • Well care and preventive screenings covered at 100%

14. “What is my prescription drug coverage?” • Automatically enrolled for Prescription Drug coverage through Express Scripts with medical plan • Retail (30 day supply) – Generic & Brand • You pay 20% ($15 min, $50 max)* • Mail Order (90 day supply) – Generic & Brand • You pay 20% ($30 min, $100 max)* • Rx Enhancement • Retail: $5; Mail Order: $10 • For any prescription used to treat asthma, depression, diabetes, high cholesterol, and hypertension *If the actual total cost of the prescription is less than the minimum ($15 or $30), then you pay the actual cost of the prescription. AZ drugs at no cost only offered to AZ Medical Plan participants

15. “What are my dental coverage options?” • Administered by MetLife • You can choose any dentist, but will receive greater benefits when you use an in-network provider • Two Dental Options - Basic & Comprehensive • No Coverage • If you select “No Coverage”, you will receive $100 cash back annually in your paycheck. • Does not apply if covered as a dependent (i.e., married to an AstraZeneca employee)

16. “What are my dental coverage options?”

17. “What are my vision coverage options?” • Vision Plan Option • Superior Vision • You can use any provider, but will receive greater benefits when you use an in-network provider • Some of the HMO/EPO and PPO plans offer vision coverage or discounts

18. Superior Vision Plan In-network and out-of-network benefits You can choose any provider, but you will save money with in-network providers

19. “What are FSAs?” • Flexible Spending Accounts (FSAs) • Two FSA Options; Administered by Aetna • Healthcare FSA (Contributions: $120-$2,500 annually) • Dependent Care FSA (Contributions: $120 to $2,500 or $5,000, depending on tax status) • Allow you to set aside money from your paycheck before taxes • “Use it or lose it” • Grace period option • List of eligible expenses can be found at www.irs.gov or www.aetnafsa.com • Enrollment in a Medical Plan is not required • Aetna Debit card is issued to all Healthcare FSA participants

20. “What are my life insurance benefits?” • Basic Life Insurance (Prudential) • 1.5 times annual base pay up to $1M—Company paid • Coverage over $50,000 subject to imputed income – can elect to limit coverage to $50,000 • Accidental Death & Dismemberment Insurance(Prudential) • 1-5 times annual base pay up to $1.25M—Employee Paid • Coverage available for your spouse and children • Business Travel Accident Coverage • 7 times annual salary up to $3.5M– Company paid

21. “What are my disability benefits?”

22. Group Universal Life • Group Universal Life Insurance (MetLife) –Employee Paid • Employee coverage: 1-6 times annual base pay up to $1.5 million • Guaranteed Issue: Up to 2 times base pay (not to exceed $400,000) if you enroll within 30 days of hire • Spouse coverage: Up to $250,000 in $10,000 increments • Guaranteed Issue: Up to $10,000 if you enroll within 30 days of hire • Child coverage: $5,000 or $10,000 • Guaranteed Issue: Up to $10,000 if you enroll within 30 days of hire • Cash accumulation feature available • Portability and conversion at termination (higher than EE rates) • Enrollment pack will be mailed to home address

23. Long Term Care Insurance Administered by CNA – Employee Paid • Provides care for people who cannot perform activities of daily living • Home care services and facility care included • Usually needed due to severe injury, chronic illness or Alzheimer’s disease • Evidence of Insurability not required for new employee enrolling within 30 days of hire • Coverage available for spouse, parents, and parents-in-law – medical eligibility required • Portable at same EE rates

24. “What are my other voluntary benefits?” • Additional Voluntary Benefits Options – MetLife • Group Home and Auto Insurance • Veterinary Pet Insurance* • Hyatt Legal Plan/MetLaw* • Special Needs Planning * You can enroll or cancel these benefits only during Annual Enrollment

25. CIGNA Employee Assistance Program Confidential and personal support for a wide range of issues • Management skills • Parenting • Legal questions • Child or elder care • Managing stress • Financial planning • Depression • Physical abuse

26. Vacation • Contact AZengage Service Centre for specific individual questions (302-886-2200 or 800-456-3669, ext.62200) • Policy is available on the intranet

27. Excused Absence Paid absence approved by one’s manager to respond to a specific need or emergency • Legal appointments • Closing on the purchase of a home • Caring for a sick child • Household emergency • Attending the funeral of someone other than an immediate family member Should not exceed five days in a calendar year

28. Education Reimbursement • Covered Expenses • individual courses or a degree program relating to employee’s current position or one which he/she is expected to be placed within a reasonable period of time Note: • for a complete explanation of this program, please visit the intranet

29. Adoption Assistance • Reimbursement • Up to $5,000 per child for expenses incurred • Expenses that qualify for reimbursement: • Legal fees and court costs  • Medical expenses for the birth mother related to the birth of the child (only for adoption of a newborn)  • Adoption agency or placement fees

30. “What tools and resources are available to me?” • www.myazbenefits.com • You can: • Access an eGuide, an online guide to your benefit options and eLearning modules • Access tools to help you make informed benefit decisions • View your benefit plan options and costs and enroll online • Enter your dependent information • Process a qualifying life status change during the year • Link to vendors’ websites for detailed contact information • Obtain benefit forms

31. “What tools and resources are available to me?” • Tools Available: • Medical Plan Cost Estimator • Compare medical plan options side-by-side so you can choose the right plan for you • WebMD Plan Comparison Tool at myCIGNAplans.com • Provides deeper understanding of what your out-of-pocket costs will be under each medical plan • Enter personal information to estimate how much you will spend out-of-pocket under each plan

32. “What tools and resources are available to me?” • Tools Available: • eLearning Modules • Module #1: Informed Decisions, Better Health • Module #2: The CIGNA Choice Fund • Other Helpful Tools • Provider Look-up • Health Plan Comparison Tool • Life Status Change Modeling Tool • Healthcare and Dependent Care FSA Estimators

33. “How do I enroll for benefits?” • Enroll within 30 days of date of hire • Enroll online or by phone by calling 1-800-352-2875 • You will need your SSN and Date of Birth for your initial login onto www.myazbenefits.com • Use online tools to help you decide • When you enroll, have: • Social Security numbers and Date of Births for your dependents • Once enrolled, you cannot change benefits until the next Annual Enrollment, unless you experience a qualifying life status change • Must elect allowable benefit changes within 30 day of event

34. “What happens if I don’t enroll within 30 days?” • You will receive the default coverage in the Core (80/20) Medical/Rx Plan for yourself only • You will be covered in the Basic Life, BTA, and STD & LTD plans. • You will not be covered in the AD&D, dental, vision, FSA, or any voluntary plans

35. “Who do I call with my questions?” • Call the AZ Benefits Center: 1-800-352-2875 • Monday through Friday: 8am – 8pm Eastern Time

36. RETIREMENT BENEFITS

37. Retirement Plans • Two plans to help you save for the future and your retirement: • AZ Retirement Plan (AZRP) • AZ Savings & Security Plan – 401(k) (AZSSP) • AZRP and AZSSP are “Defined Contribution” (DC) plans. This means specific amounts of money are deposited into individual accounts by the company (for AZRP and AZSSP) and/or the employee (for AZSSP)

38. Fidelity Investments • Fidelity Investments is the record keeper and trustee for the AZRP and the AZSSP • The AZRP and AZSSP plans are managed through the same Fidelity website • New hire information is transmitted weekly to Fidelity for account setup and communication. • Information on AZRP and an enrollment brochure for AZSSP are mailed directly to your home address by Fidelity Investments • The AZRP and AZSSP plans are independent of each other. Therefore, investment choices and beneficiary designations must be made for each plan

39. AZ Retirement Plan (AZRP) • Defined contribution plan – AstraZeneca makes contributions each pay period to employee accounts • Immediate participation • 3-year vesting; vesting service includes service as contractor or leased service with AZ • if you leave before vesting, account is forfeited • Portable – if you leave AZ after vested, your account can be rolled over to new employer plan or personal IRA • Important: Participants must make investment choices for AZRP contributions; if no choice is made, contributions are deposited in the default fund (Target Retirement funds)

40. AZRP – Contributions • Contributions are calculated as a percentage of eligible pay (base pay, incentive pay, overtime and awards over $500) based on a scale of age + service • Contributions are calculated each pay period and made to the plan according to your personal investment allocations

41. Company Contribution Chart Age plus ServiceCompany Contributions Under 40 points 5% 40 to 59 points 6% 60 to 79 points 7% 80 or more points 8% • Points equal sum of age and service as of 12/31 of year preceding contribution

42. Contribution Example • 36 yrs. old with 0 yrs. of service at date of hire • AZRP points = 36 • AZRP contribution % = 5% • Contribution = eligible pay during pay period x 5% • If you work two more years: • age = 38 • service = 2 years • points = 40 • contribution = eligible pay during pay period x 6%

43. AZ Savings & Security Plan (AZSSP) - 401(k) Immediate eligibility and vesting – no waiting period for contributions or match Company match: $1.00 for each $1.00 contributed up to 6% (before- or after-tax); deposited per your investment allocation choices. Plan contribution limit = 50% of eligible pay (on a before-tax and/or after-tax basis). Eligible pay includes base pay, incentive pay, overtime and awards over $500 2013 IRS contribution pre-tax limit = $17,500 (does not include company match) Note: If you have made contributions under a previous employer’s plan during the plan year, you need to monitor your contributions into the AZSSP to ensure you don’t exceed the IRS pre-tax limit.

44. AZ Savings & Security Plan (AZSSP) - 401(k) • Enter a “spillover election” if you want your contributions to continue on an after-tax basis upon reaching the pre-tax limit. You will continue to receive company matching contributions on the after-tax deductions. • $5,500 catch-up contribution for participants age 50 and above (eligible for company match) • Important: Participants must make investment choices for AZSSP contributions; if no choice is made, contributions are deposited in the default fund (Target Retirement funds)

45. AZRP and AZSSPInvestment Options Choose from 10 Target Retirement Funds based on your age or projected retirement date and/or Choose from among the 19 individual investment options • Includes a variety of options, ranging in risk from a money market fund to a variety of mutual funds to the AZ Company Stock Fund Note: The AZ Company Stock Fund is available in AZSSP only

46. Investment Options (cont’d) • Diversification is a key investment objective, whether you choose a Target Retirement Fund or from among the individual fund options. • Descriptions, performance and prospectuses available via web site or by request • No restrictions on changes to contribution rates or investment elections

47. Rollover Process • Rollover to AZ plan for convenience in account management • Rollover contribution form enclosed with enrollment package – AZ accepts qualified plans, including 403(b), 457, etc. • Follow instructions on rollover contribution form to submit check • Funds available for plan loans or withdrawals in emergency situations

48. Fidelity Account Access & Questions • Fidelity’s AZ Employee Service Center: • 1-877-307-7662 • NetBenefits via internet: • www.401k.com • 24/7 Access on web and VRS • Fidelity’s system will recognize that you are a new AZ employee when you enter your SSN

49. Fidelity - Steps to Enroll • Set up PIN – Enter data and choose PIN • Social Security number • Date of birth • Zip code • Enter your investment choices and beneficiary designation for AZRP. • Enter your contribution election, investment choices and beneficiary designation for AZSSP.