Teva Pharmaceutical Industries Limited · TASE:TEVA

Teva Pharmaceutical Industries — 37th Annual J.P. Morgan Healthcare Conference (January 2019)

12 slides from Teva Pharmaceutical Industries's conference presentation, Jan 7, 2019

  1. Slide 1: Teva Pharmaceutical Industries Ltd. J.P. Morgan Healthcare Conference

    Teva Pharmaceutical Industries Ltd. J.P. Morgan Healthcare Conference Kåre Schultz President and CEO January 7, 2019

  2. Slide 2: Cautionary Note Regarding Forward-Looking Statements

    2 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertain

  3. Slide 3: Highlights

    3 Highlights  Restructuring program on-track: significant spend base reduction of $1.8 billion Q3 YTD 2018  Approval and launch of AJOVY™ in the U.S.; demand continues to grow steadily over the first three months of launch  AUSTEDO® rapid growth continues  COPAXONE® maintaining share in the U.S.

  4. Slide 4: Spend Base: Q3 YTD 2018 vs. Q3 YTD 2017

    4 Spend Base: Q3 YTD 2018 vs. Q3 YTD 2017 $ billions -1.8 (-14%) 12.3 (2.0) • Spend base reduction $1.8B already 0.2 10.5 achieved (Q3 YTD 2018) • FTE reduced by ~10,000 since the start of the restructuring plan Q3 YTD 2017 Spend base * FX Q3 YTD 2018 reduction headwind *Spend Base = Non-GAAP COGS +

  5. Slide 5: 2018 Net Debt Movement

    5 2018 Net Debt Movement $ billions -3.9 (-12%) 4.5 (3.8) 31.5 (3.4) (0.9) 27.6 (0.3) Net Debt December 31, March 2018 Senior Notes Term Loans Increase in FX Fluctuations September 30, 2017 New Issuance Repayment Repayment Cash Balances & Other, Net 2018 Gross Debt 32.5 29.5 Cash Balance 1.0 1.9 * N

  6. Slide 6: Strategy Principles

    6 Strategy Principles One company Organic growth Leadership in Generics Biologics as core R&D platform Targeted investments

  7. Slide 7: Generics – Our Way Forward

    7 Generics – Our Way Forward Portfolio Profitability Biosimilars  Proactive portfolio  Improve pricing,  Build a Biosimilars selection and grow top and bottom pipeline and management line from existing manufacturing products capabilities  Keep focus on first to market and high-barrier  Benefit

  8. Slide 8: Specialty – Our Way Forward

    8 Specialty – Our Way Forward Commercial R&D  Ensure the commercial success of  Build a Biologics platform: expand our core assets in-house Biologics capabilities  Continue to build our commercial  Focus the inhaler technologies on capabilities in new franchises and lifecycle management opportun

  9. Slide 9: Long-term Growth Drivers

    9 Long-term Growth Drivers • Continued global volume growth trend • Size of generic launch opportunities stable for both ‘classical’ generic and Generics biosimilars; <$200B worldwide sales at risk from patent expiration through 2024* • Complexity of generic product development requires deep R&D cap

  10. Slide 10: Long-term Financial Targets

    10 Long-term Financial Targets To be achieved within 3-5 years Operating Income Margin*1 Cash-to-earnings*2 Net debt/EBITDA*3 27% >80% <3X Committed to utilizing cash flow to pay down debt; we do not plan to raise equity • 1 Operating income margin = Non-GAAP operating income divided by net revenues

  11. Slide 11: 2019 Areas of Focus

    11 2019 Areas of Focus Revenue Generating Expense Management Debt Reduction — AJOVY™ and AUSTEDO®: — Achieving restructuring — Committed to utilizing cash Full organizational focus for ongoing launch success; target: spend base reduction flow to pay down debt expect EMA action on AJOVY of $3 billion

  12. Slide 12: Thank you.

    Thank you.

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