AZ Rewards & Recognition Program Launch

1. AZ Rewards & Recognition Program Launch April 11, 2014

2. Steve DescovichStrategic Project ManagerHR - Employee Performance & Engagement

3. Agenda • Rewards & Recognition Program Overview • Interim Solution – AC Proxy Process • Steady State Process • Employee utilization & feedback • OC Tanner System Demo • Q&A

4. AZ Reward and Recognition platform launched January 15, 2014 in the US Business One solution for all cash equivalent and non-cash rewards • All non-cash and cash equivalent rewards managed by a single supplier. • Employees choose their award from pre-determined value levels. • Online, automated system (OC Tanner) for rewarding & redeeming with tracking & reporting capabilities. • Criteria aligned with our new corporate values. • Launch to US Business initially; evolve strategy to include Operations, R&D, MedImmune and Canada later in 2014. • Meets IRS requirements for income reporting, including gross up. • All material goods are now taxable. No $ minimums. • Simplified, centralized process saves managers time and resources. • Single sign on, i-pad enabled • Managers can reward “on-the-spot”. • Nominating manager’s cost center is charged for non-cash awards.

5. What do leaders and managers need to know? Communication and training via multiple channels • Web ex sessions to demo program and provide Q&A for managers • Online training modules provided for managers and employees • Support materials available on Welcome portal and US section of your.az portal • FAQ, expense reimbursement policy, Nomination/Approval Process (Steady State) • Only managers can give monetary rewards: employees cannot reward each other • Manager + 1 approval required for managers giving non-cash & cash equivalent rewards ($200 & $500 levels only) • Line manager approval required for peer rewards (e.g. managers who want to reward an employee in another area of the business - $200 & $500 levels only) • Managers can delegate their ACs as proxies to nominate rewards Other suppliers or programs for non-cash rewards should be discontinued • Eliminates separate, customized team and function rewards • Mandate is in line with company policy change requiring income reporting for employees earning all types of rewards • Cash rewards can still be given. Must be submitted through separate AZEngage process. Instructions available in US section of your.az portal.

6. Rewards & Recognition Program: Employee Utilization

7. Rewards & Recognition Program: Field Sales Utilization

8. AZ Rewards & Recognition Program: Post Launch Feedback • Positives: • Several emails from managers state the system is, “fantastic, easy, makes sense, • right for the business, has good variety of items.” • No manager approval required at $25, $50, and $100 reward levels – “easier to • manage, more likely to use.” • OC Tanner manager reports provide ability to monitor level of use. • AC proxy process reduces manager burden and reward process delays. • Avoids manual process to enter reward into AZEngage. • Opportunities Longer Term: • OC tanner System enhancements to consider • Move to a points based system, ability to combine rewards for a larger reward • Capability to enter a large volume of nominations (► 25) in one submission

9. AZ Rewards Program: Interim Nomination Process • AC Proxy Process: April 11 – June/July, 2014 • To nominate an employee or peer, manager sends spreadsheet via an email • to the designated AC Proxy assigned to their area of the business. • Nominating manager will receive a confirmation email from OC Tanner system. • Nominees can redeem rewards within OC Tanner system. • Field based managers and employees can access the OC Tanner system • at http://www.appreciatehub.com/astrazeneca. • Managers/employees will be required to provide a unique password • each time they log in to the OC Tanner system. • Steady State: June/July, 2014 • Once all transitioned managers/employees have AZ hardware and full access to • AZ intranet, nomination process will be in OC Tanner system (no spreadsheets) • Single sign on capability – no need for password.

10. Interim Nomination Process: Spreadsheet

11. Interim Rewards Nomination Process – AC Proxy Manager sends Nomination spreadsheet to assigned AC Proxy System sends email to employee (Customizable by the manager) Employee logs into OC Tanner portal to order reward and determine shipping Field manager decides to award employee Request may need Manager + 1 approval ($200 & $500 levels only) System confirms order and ship date OC Tanner manages this process/system for AZ • Reporting Function: • Rewards Vendor system captures: • Awarding manager • Recipient • Award amount • Kind of award (gift card, material, experience) • Award date • Awarding manager cost center • Benefits: • Leaders/managers can get utilization/budget reports • Ensures compliance with W-2 reporting requirements • for capturing employee “earnings” Item shipped to address designated by employee Order goes to OC Tanner for fulfillment

12. OC Tanner Contact Information CONTACT INFORMATION Non-cash and Cash Equivalent Awards: Contact O.C. Tanner, our program administrator. email address for support: orders@octanner.com Toll-free number: 1-888-708-7080  or ext.: 43330 Phone support schedule: 6:30am - 5:00pm MST (M-F) Return Center:  ​ OC Tanner Return Center1865 South Main St. Suite #12Salt Lake City, UT 84115 email: return.questions@octanner.com Toll-free number: 1-888-708-7080  ext.: 30752 Fax Number: 1-801-493-3254

13. Appendix

14. OC Tanner Rewards Process Flow – Steady state Manager logs onto OC Tanner Rewards portal, completes nomination form System sends email to employee (Customizable by the manager) Manager decides to award employee Employee logs into portal to order award at respective level Line Manager + 1 approval ($200 & $500 levels only) System confirms order and ship date OC Tanner manages this process/system for AZ • Reporting Function: • Rewards Vendor system captures: • Awarding manager • Recipient • Award amount • Kind of award (gift card, material, experience) • Award date • Awarding manager cost center • Benefits: • Leaders/managers can get utilization/budget reports • Ensures compliance with W-2 reporting requirements • for capturing employee “earnings” Item shipped to address designated by employee Order goes to OC Tanner for fulfillment