Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q3 2023 Earnings Presentation
54 slides from Teva Pharmaceutical Industries's earnings presentation, Nov 8, 2023
Slide 1: Teva Pharmaceutical Industries Ltd. Q3 2023 Results
teva Teva Pharmaceutical Industries Ltd. Q3 2023 Results November 8, 2023
Slide 2: Cautionary Note Regarding Forward-Looking Statements
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 Uncertainti
Slide 3: President and Chief Executive Officer
President and Chief Executive Officer teva
Slide 4: Support for employees in Israel and continuity of supply
4| * The support and care for the wellbeing of our employees in Israel is our top priority * The resilience and dedication of our employees has sustained our focus on delivering our medicines to the millions of patients around the world who count on us Increased support of emergency supply of medici
Slide 5: Strong performance of Q3 2023
Q3 2023 Strong performance of AUSTEDO®, AJOVY® and generics across all regions Gross profit continues to improve Pivot to Growth strateg in action: TL1-A exclusive collaboration with Sanofi Full year 2023 revenues outlook consecutive increase to $15.1-$15.5 5| Revenues $3.9 bi Non-GAAP EPS SO. Adjus
Slide 6: Executing Teva's Pivot to Growth Strategy
6| Executing Teva’s Pivot to Growth Strategy Deliver on growth engines Vv * AUSTEDO to reach $1.2 billion in 2023; reaffirming goal to achieve $2.5 billion by 2027 * UZEDY™ launch and uptake * Alvotech FDA reinspection expected Q1 2024 Step up innovation ¢ Anti-TLIA exclusive collaboration with Sano
Slide 7: Anti-TL1A Collaboration with Sanofi
Anti-TL1A Collaboration with Sanofi Py — - Step up Innovation Vv * Partnership with a global leader in Inflammation and Immunology * Ambition to optimize development * Strategic collaboration with joint development plan and 50/50 in cost and profit sharing \ / oO] Expanding Commercial Potential Vv *
Slide 8: Q3 2023 Strong Performance
Q3 2023 Strong Performance =Austedo’ and Revenue Growth hey North America vy, Generics AJOVY Revenues of S3 . 9 b 3 Europe Generics +7% 8] % In local currency, compared to Q3 2022 International Markets Generics teva
Slide 9: 70,000 60,000 50,000 40,000 30,000 20,000 10,000
70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
Slide 10: AUSTEDO: Reaffirming Goal to Achieve $2.5B by 2027
@ Austedo & AUSTEDO me Reaffirming Goal to Achieve $2.5B by 2027 -Y- Commercial excellence including increased Largely under-treated and ' field force resources under-diagnosed TD market AAS Enhanced patient support to improve Number of U.S. tardive dyskinesia patients in thousands (2022) SF fill ra
Slide 11: AJOVY Global Growth
AJOVY sO injection 225 mg/1.5 mL G lo ba l G rowth Quarterly Global Net Sales $114m On track to reach 2023 revenues a o33 guidance of $400 million, $93m with $114 million net global sales in Q3’23 Q3’22 Continued growth, up 22% vs. Q3’22 in local currency Strong competitive positioning in the U.S. (
Slide 12: UZEDY (risperidone) Launched in May 2023
UZEDY (risperidone) Launched in May 2023 UZEDY provides differentiated profile for schizophrenia patients, with steady uptake since launch UZEDY. (risperidone) 121 $4 billion U.S. market size for LAls Access continues to improve across all channels UZEDY is capturing >55% of all NBRx in risperidone
Slide 13: Generics Growth Across all Markets
Generics Growth Across all Markets S$ millions, % in local currency +15% growth @ 03-22a5 reported e Q3-23 as reported Local currency impact Q3-22 Q3-23 Q3-22 Q3-23 Q3-22 Q3-23 North America Europe International Markets BI teva
Slide 14: Good Progress on Our Late-Stage Pipeline
Good Progress on Our Late-Stage Pipeline Mm = Olanzapine LAI & (TEV-'749) H2 2024 — Phase Ill results (Accelerated from H1 2025) ICS/SABA (TEV-'248) H2 2026 — Phase III results, Anti-TL1A Ode, (TEV-'574) H2 2024 — Phase Il interim Potential to be first long-acting olanzapine with a favorable safety
Slide 15: Our recent ESG highlights
Our recent ES¢ Target Updates Additional Highlights 7 3 Wy WINNER Access programs cumulative launched (of 8 regulatory 2025 target) submissions* Corporate ESG Awards 2023 (51% of 2025 target) Company for Sustainability Reporting y) 4 inali: Company for Social Responsibility reduction in scope 1 and
Slide 16: Executive Vice President, Global R&D & Chief Medical Officer
Eric Ht MD, Executive Vice President, Global R&D & Chief Medical Officer teva
Slide 17: AUSTEDO Titration Kit Enabled Patients to Reach a Therapeutic Dosage
AUSTEDO Titration Kit Enabled Patients to Reach a Therapeutic Dosage and Experience Effectiveness Similar to Pivotal Trials * The appropriate dose of AUSTEDO is determined individually for each patient based on efficacy and tolerability * Real-world interim results from the START study show that whe
Slide 18: AJOVY reduced migraine attacks and depression symptoms: UNITE Study
AJOVY® reduced migraine attacks and depression symptoms in migraine sufferers with MDD — Phase 4 UNITE Study Migraine is associated with depression and is a predictor of chronic migraine increasing, headache-related disability and decrease quality of lifet* & UNITE Study enrolled people with migrain
Slide 19: UZEDY data
UZEDY q1m UZEDY q2m UZEDY overall UZEDY q1m UZEDY q2m UZEDY overall UZEDY q1m UZEDY q2m UZEDY overall UZEDY q1m UZEDY q2m UZEDY overall
Slide 20: Subcutaneous Olanzapine Extended-Release Injection Study (SOLARIS)
The Subcutaneous Olanzapine Extended-Release Injection Study (SOLARIS; NCT05693935) in Adult Schizophrenia Treatment period (Up to 56 weeks) Double-blind, Open-label safety period placebo-controlled period 8 weeks Up to 48 weeks TV-44749 high dose qim sc Tv-44749 medium dose TV-44749 medium dose qim
Slide 21: Anti-TL1A Revenue Potential Maximized Through Collaboration
Anti-TL1A Revenue Potential Maximized Through Collaboration Large underserved market Expected anti-TL1A competitive profile Unmet patient population rs) Promising pre-clinical data Showcasing potential to be best-in-class >4M' diagnosed patients e Well-characterized safety and ADA profile from outco
Slide 22: Next Milestones on our Key Innovative Pipeline Assets
Next Milestones on our Key Innovative Pipeline Assets aA Phase Il interim analysis > 20 F orenzapine Lal Adult Phase III results yx aes Phase | FIH SAD/MAD HV results xz» ae First patient enrolled in Phase | trial D200 4 nee Phase III results Dp zr fF 22 SAD/MAD: Single Ascending Dose/Multiple Ascen
Slide 23: Next Milestones on our Key Innovative Pipeline Assets
Next Milestones on our Key Innovative Pipeline Assets aA Phase Il interim analysis > 20 F orenzapine Lal Adult Phase III results Dp rr f aes Phase | FIH SAD/MAD HV results xz» ae First patient enrolled in Phase | trial D200 4 nee Phase III results Dp zr fF 23 SAD/MAD: Single Ascending Dose/Multiple
Slide 24: Executive Vice President, Chief Financial Officer
Eli Kal Executive Vice President, Chief Financial Officer teva
Slide 25: Q3 2023 Summary
Q3 2023 Summary $ millions, except EPS Q3 2023 Q3 2022 Q3 2023 Q3 2022 GAAP N GAAP Revenues 3,850 3,595 3,850 3,595 Operating income 355 419 1,020 977 Net income attributable to Teva 80 56 677 658 Earnings per share ($)* 0.07 0.05 0.60 0.59 1,135 million 1,119 million = 1,135 million 1,119 million s
Slide 26: Non-GAAP Adjustments
Non-GAAP Adjustments $ millions Q3 2023 Comments Amortization 145 Impairment of long-lived assets 48 Legal settlements 314 Mainly related to estimated provisions recorded in connection with certain Equity compensation plans 31 Restructuring Accelerated depreciation Contingent consideration 16 Financ
Slide 27: Q3 2023 Non-GAAP Summary
27| Q3 2023 Non-GAAP Summary Q3 YTD Q3 YTD $ billions, except EPS Q3 2023 Q3 2022 Change 3023 3022 Change Revenues 3.9 3.6 7% 11.4 11.0 3% . 21 1.9 8% 5.9 6.0 -1% Gross profit 53.5% 53.0% 0.5% 51.6% 53.9% -2.3% oo. 1.0 1.0 4% 2.8 3.0 6% Operating income 26.5% 27.2% -0.7% 24.7% 27.3% -2.6% EBITDA 11
Slide 28: Spend Base
Spend Base In local currency +171 (+7%) 2,618 2,830 +541 (+7%) In local currency +610 (+8%) 8,573 $ millions @ COGS @ OPEX Q3-22 Revenues 3,595 GP% 53.0% OP% 27.2% 28| teva
Slide 29: Free Cash Flow by Quarters
29| Free Cash Flow by Quarters $ millions 1140 795 1103 902 f 1 716 cas f 1 632 301 229 117 = = T T T T — T T 1 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Free cash flow includes cash flow from operating activities, beneficial interest collected in exchange for securitiz
Slide 30: Ongoing Debt Reduction
Ongoing Debt Reduction $ billions Net Debt 18.4 EBITDA MAT 46 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 30 | * Teva's Net Debt/EBITDA MAT covenant ratio limits are 4.25x for Qt 2023 - QB 2023 and 4.00x for Q4 2023 teva
Slide 31: Gross Debt and Net Debt
Gross Debt $20.7B Duration 6.2 Net Debt $18.0B WAC 4.5%
Slide 32: 2023 Non-GAAP Outlook
2023 Non-GAAP Outlook $ billions, November 2023 August 2023 February 2023 except EPS or as noted Outlook* Outlook Outlook Revenues 15.1—15.5 15.0-15.4 14.8 -15.4 14.9 COPAXONE ($m) ~550 ~500 ~500 691 AUSTEDO ($m) ~1,200 ~1,200 ~1,200 971 AJOVY ($m) ~400 ~400 ~400 377 Operating Income 4.0-4.4 4.0-4.4
Slide 33: In Summary
In Summary 33| Strong Q3 2023 performance driven by our growth drivers AUSTEDO - Strong performance and revenues growth momentum UZEDY - Outstanding feedback from health care providers and patients; confirming product profile benefits AJOVY - Continued growth momentum Generics — Strong performance a
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Slide 35: Innovative and Biosimilar Medicines
Innovative and teva 35|
Slide 36: Teva Innovative Medicine Pipeline
36| Teva Innovative Medicine Pipeline Under Preclinical Phase 2 Regulatory Review —— ee Le —— TEV-'278 TEV-’408 Anti-TL1A Olanzapine LAI Digihaler® Oncology Gastrointestinal (TEV-'574) (TEV-'749) (budesonide and p Ulcerative Colitis Schizophrenia formoterol TEV-'279 TEV-"192 Crohn’s Disease eee Neur
Slide 37: Commercial Biosimilar Products
Commercial Biosimilar Products1, 2 * . 1.
Slide 38: Additional Financial Information
Additional Cc O yp MO = L O ue = teva 38|
Slide 39: Q3 YTD 2023 Summary
Q3 YTD 2023 Summary $ millions, except EPS a oy G ale o se o oe GAAP | AAP Revenues 11,389 11,041 11,389 11,041 Operating income (loss) (289) (1,244) 2,816 3,010 Net income (loss) attributable to Teva (988) (1,132) 1,762 2,021 Earnings (loss) per share ($)* (0.88) (1.02) 1.56 1.81 1,119 million 1,10
Slide 40: Q3 2023 income statement
3,850 3,595 7% 1,999 51.9% 1,926 53.6% 4% 1,851 1,669 11% 48.1% 46.4% 253 6.6% 175 4.9% 44% 576 15.0% 539 15.0% 7% 268 7.0% 283 7.9% )5%( 314 8.2% 195 5.4% 61% 93 2.4% 60 55% )9( )0.2%( )2( )0.1%( 374% 355 419 )15%( 9.2% 11.6% 280 7.3% 252 7.0% 11% )12( )16.5%( 107 64.4% 0.2% 3 )0.1%( 124% 80 2.1% 5
Slide 41: Q3 YTD 2023 income statement
11,389 11,041 3% 6,159 54.1% 5,839 52.9% 5% 5,230 5,203 1% 45.9% 47.1% 726 6.4% 628 5.7% 16% 1,726 15.2% 1,716 15.5% 1% 870 7.6% 892 8.1% )2%( 1,009 8.9% 2,048 18.6% )51%( 1,230 10.8% 1,250 11.3% )2% )43( )0.4%( )88( )0.8%( 51%( )289( )1,244( )77%( )2.5%( )11.3%( 808 7.1% 721 6.5% 12% )48( 4.3% )792
Slide 42: 3,850 3,595 )9( )53( )51(
3,850 3,595 255 )9( 264 419 )53( 977 43 )51( 93
Slide 43: Net Revenue and Non-GAAP Profitability
Net Revenue and Non-GAAP Profitability S millions 4,100 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Mmm Net Revenues = ——Non-GAAP Gross Profit Margin ——Non-GAAP Operating Margin 43| teva
Slide 44: 1,766 1,991 2,002 76 64 103 424 392 367 160 133 146 1,184 1,163
1,766 1,991 2,002 824 969 929 49 57 61 170 308 339 63 69 57 76 64 103 424 392 367 160 133 146 1,184 1,163 1,146 932 909 886 36 39 41 59 60 55 68 66 61 89 89 104 492 479 485 400 394 381 10 9 12 12 10 10 70 67 82 219 245 217 3,661 3,878 3,850
Slide 45: Non-GAAP Profits and EPS
Non-GAAP Profits and EPS S millions, EPS in$ 1,248 1,130 1,042 1,018 97 785 854 a 651 658 457 Q3 2021 Q42021 Q12022 Q2 2022 Q3 2022 Q4 2022 Q12023 Q2 2023 Q3 2023 mmm Non-GAAP Net Income mmm Non-GAAP Operating Income —Non-GAAP EPS 45| teva
Slide 46: Q3 2023 Non-GAAP Operating Income
Q3 2023 Non-GAAP Operating Income S millions Nominal +$43m (+4%) +§94m in local currencies (+10%) Q3-22 Act. North America Europe International Markets Other Activities Q3-23 Act. 46| teva
Slide 47: Q3 YTD 2023 Non-GAAP Operating Income
Q3 YTD 2023 Non-GAAP Operating Income $ millions -$73m In local currencies (-2%) YTD-22 North America Europe International Markets — Other Activities a7 teva
Slide 48: (3%) ( ) ( ) ( ) )32%( )33%( )33%( )37%( )44%( 633 577
(3%) ( ) ( ) ( ) 366 )32%( 338 334 )33%( 360 )33%( )37%( 345 )44%( 633 577 477 )56%( 520 )51%( )57%( )49%( 332 )42%(
Slide 49: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA S millions 1,240 1,089 4,125 1,134 899 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 49| Please see our press release reporting our financial results for the first second of 2023 for a reconciliation of Adjusted EBITDA to its nearest GAAP equivalent teva
Slide 50: Q3 2023 Adjusted EBITDA to Free Cash Flow
Q3 2023 Adjusted EBITDA to Free Cash Flow S millions (305), (80%) (i)) (438) Non-GAAP Interest Tax payments AR Inventory Legal AP &Other Securitization Operating Securitization Asset sales, Free cash flow EBITDA payments, net settlements cash flow reclass net; Capex gross 50] — Q3 securitization cas
Slide 51: 2.2 2.7 )0.5( 3.4 3.5 )0.1( 1.7 1.8 )0.1( 4.1 4.1 0.0 5.6 5.7
2.2 2.7 )0.5( 3.4 3.5 )0.1( 1.7 1.8 )0.1( 4.1 4.1 0.0 5.6 5.7 )0.1( 5.5 5.7 )0.2( 16.9 17.1 )0.2( 2.7 2.4 0.3 42.1 43.1 )1.0( 2.3 2.5 )0.2( 3.4 3.4 0.0 4.4 3.9 0.5 20 20.7 )0.7( 4.5 4.8 )0.3( 0.6 0.7 )0.1( 6.9 7.1 )0.2( 42.1 43.1 )1.0(
Slide 52: Q3 2023 Debt Movements
Q3 2023 Debt Movements S billions June 30, Debt RCF FX& Other Sept 30, Cash Sept 30, 2023 Repayment Withdrawal 2023 balance 2023 Gross Debt Gross Debt Net Debt 52] teva
Slide 53: Net Debt Development
Net Debt Development S billions $350 $34.0 $33.0 $31.0 $29.0 $27.0 $25.0 $23.0 $21.0 $19.0 $17.7 $17.0 Q3'17 Q4'17 Q148 Q2'18 Q3'18 Q4'18 Q119 Q2'19 319 Q4'19. Q1'20 Q2'20 Q3'2094'20 Q1'21 Q2'21 Q3'21.04'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 53] teva
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Teva Pharmaceutical Industries — Q3 2023 Earnings Presentation on 6ix