25 slides from Teva Pharmaceutical Industries's earnings presentation, Jul 30, 2015
Slide 1: 2nd Quarter & 1st Half 2015 Review
1 2nd Quarter & 1st Half 2015 Review July 30 2015
Slide 2: Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995
2 Safe Harbor Statement under the U.S. Private Securities 2 Litigation Reform Act of 1995: This release contains forward-looking statements, which are based on management’s current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future
Slide 3: Erez Vigodman, President & CEO
3 3 Erez Vigodman President & CEO
Slide 4: Eyal Desheh, EVP, Chief Financial Officer
4 4 Eyal Desheh EVP, Chief Financial Officer
Slide 5: Second Quarter 2015 Results
5 Second Quarter 2015 Results
Slide 6: Q2 2015 – An Outstanding Quarter for Teva
6 6 Q2 2015 – An Outstanding Quarter for Teva Q2 2015 Q2 2014* Change Revenues $m 4,966 5,045 (2%) Operating Income 1,610 1,387 +16% $m (32.4%) (27.5%) Net Income 1,230 1,069 +15% $m (24.8%) (21.2%) EPS 1.43 1.25 +14% $ Cash flow from Operations 1,480 1,053 +41% $m Free Cash Flow 1,336 882 +51% $m *
Slide 7: Foreign Exchange Impact
7 Foreign Exchange Impact 7 Q2 2015 Q2 2014 Change ($m) Fx Effect* ( $m) Real Change Revenues $m 4,966 5,045 (79) (341) +262 Operating income 1,610 1,387 223 (4) +227 $m *Includes profits from certain hedging transactions
Slide 8: Cash Flow Trends
8 Cash Flow Trends $ million 1,752 269 1,480 1,424 1,354 144 Cash From 206 141 Operations 1,053 Asset Purchase, Net 171 Free Cash Flow* 1,483 1,336 1,218 1,213 882 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 * Commencing Q4 2014, the data presented has been conformed to reflect the revised definition of
Slide 9: Quarterly Revenue Breakdown by Market
9 9 Quarterly Revenue Breakdown by Market $ million 5,045 4,966 987 – 20% 814 – 17% 1,200 – 24% ROW 1,521 – 30% Europe US 2,952 – 59% 2,537 – 50% Q2 14 Q2 15
Slide 10: Quarterly Revenue Breakdown by Segment
10 Quarterly Revenue Breakdown by Segment $ million 5,045 4,966 503 - 10% 410 - 8% 1,088 - 21% 1,036 - 21% OTC & Other 939 - 19% 1,054 - 21% Specialty ex-MS MS Generics 2,515 - 50% 2,466 - 50% Q2 14 Q2 15
Slide 11: Quarterly Revenues
11 Quarterly Revenues $ million 9 154 341 148 49 5,045 4,966 Q2 2014 Generics MS Specialty ex- FX OTC* and Q2 2015 MS Other All data, except Fx, are net of the impact of foreign exchange fluctuations. *includes impact of U.S. OTC plants divestment
Slide 12: Copaxone® Revenues Evolution
12 Copaxone® Revenues Evolution US demand is stable despite generic launch 1,200 35% 1,000 286 184 33% 307 800 277 192 31% 600 29% 400 835 870 800 732 662 200 27% 0 25% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 $ million US sales Ex-US sales US TRx MS* Copaxone® family * Market share data, including historic da
Slide 13: Revenues and Profitability Evolution
13 Revenues and Profitability Evolution Focus and efficiency gains are reflected in improved profitability for the Company 5,400 33% 32.4% 5,200 32% 30.8% 31% 5,000 29.4% 30.1% 30% 4,800 27.5% 29% 4,600 27.6% 28% 4,400 27% 4,200 26% 4,000 25% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 $ million Net Revenue
Slide 14: Continuous Improvement of Our Generics Business
14 Continuous Improvement of Our Generics Business Generics Segment Gross Profit and Profit* Margin Evolution 49.0% 48.6% 44.3% 43.9% 41.7% 30.5% 29.6% 23.0% 23.0% 21.3% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Profit Margin Gross Profit Margin * Segment profit consists of gross profit, less S&M and R&D expens
Slide 15: Quarterly Operating Income
15 15 Quarterly Operating Income $ million 84 139 25 193 1,580 1,635 1,610 1,610 1,387 1,387 Q2 2014 Generics MS Specialty G&A and Others Q2 2015 ex-MS Operating Income increased 16% year-over-year
Slide 16: 1st Half 2015 – Strong Results
16 16 1st Half 2015 – Strong Results H1 2015 H1 2014 Change Revenues $m 9,948 10,046 (1%) Operating Income $m 3,143 2,768 +14% Net Income 2,393 2,120 +13% $m EPS $ 2.79 2.48 +13% Cash flow from Operations $m 2,834 1,951 +45% Free Cash Flow $m 2,549 1,555 +64%
Slide 17: 2015 Business Outlook: Increased Again
17 17 2015 Business Outlook: Increased Again as a Result of Improvements in Core Business Performance and Operating Efficiency December 11, 2014 July 30, 2015 Net Revenues ($b) 19.0-19.4 19.0 - 19.4 Gross Profit (%) 59.5%-61.5% 60.5% - 62.5% R&D ($b) 1.3-1.4 1.3 - 1.4 S&M ($b) 3.3-3.5 3.3 - 3.5 G&A
Slide 18: Quarterly Dividends
18 Quarterly Dividends
Slide 19: Teva’s Dividend Payments
19 Teva’s Dividend Payments 350 $0.40 Q2 2015 dividend per share of $0.34 300 $0.35 $0.30 250 $0.25 200 $0.20 150 291 299 294 290 288 289 281 268 264 276 272 $0.15 230 237 214 100 203 203 204 190 164 167 172 174 $0.10 50 $0.05 0 $0.00 Total Dividend ($m) $ per Share Total dividends represent payment
Slide 20: Q&A
20 20 Q&A
Slide 21: Additional Information
21 Additional Information
Slide 22: H1 2015 Non-GAAP Income Data
22 H1 2015 Non-GAAP Income Data 22 $ million H1 2015 H1 2014 Except EPS H1-15 Margins H1-14 Margins Change Revenues 9,948 10,046 (1%) COGS 3,766 37.9% 4,129 41.1% (9%) Gross Profit 6,182 62.1% 5,917 58.9% +4% R&D 685 6.9% 691 6.9% (1%) S&M 1,754 17.6% 1,874 18.7% (6%) G&A 600 6.0% 584 5.8% +3% Opera
Slide 23: H1 2015 GAAP Income Data
23 H1 2015 GAAP Income Data 23 $ million H1 2015 H1 2014 except EPS H1-15 Margins H1-14 Margins Change Revenues 9,948 10,046 (1%) COGS 4,210 42.3% 4,688 46.7% (10%) Gross Profit 5,738 57.7% 5,358 53.3% +7% R&D 718 7.2% 697 6.9% +3% S&M 1,782 17.9% 1,905 19.0% (6%) G&A 632 6.4% 604 6.0% +5% Legal set
Slide 24: Q2 2015 Non-GAAP Income Data
24 Q2 2015 Non-GAAP Income Data 24 $ million Q2 15 Q2 14 Except EPS Q2 2015 margins Q2 2014 margins Change Revenues 4,966 5,045 (2%) COGS 1,846 37.2% 2,116 41.9% (13%) Gross Profit 3,120 62.8% 2,929 58.1% +7% R&D 357 7.2% 340 6.7% +5% S&M 846 17.0% 911 18.1% (7%) G&A 307 6.2% 291 5.8% +5% Operating
Slide 25: Q2 2015 GAAP Income Data
25 Q2 2015 GAAP Income Data 25 $ million Q2 2015 Q2 2014 Except EPS Q2-15 Margins Q2-14 Margins Change Revenues 4,966 5,045 (2%) COGS 2,064 41.6% 2,384 47.3% (13%) Gross Profit 2,902 58.4% 2,661 52.7% +9% R&D 386 7.8% 344 6.8% +12% S&M 860 17.3% 921 18.3% (7%) G&A 325 6.5% 302 6.0% +8% Legal settlem