Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Investor Day (September 2008)
30 slides from Teva Pharmaceutical Industries's investor day presentation, Sep 9, 2008
Slide 1: Teva – General Overview
Teva – General Overview Eyal Desheh, Chief Financial Officer September 9, 2008 Jerusalem
Slide 2: Forward Looking Statement
Forward Looking Statement Today’s presentations contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management' s current beliefs and expectations and involve a number of known and unknown risks and uncertainties that co
Slide 3: Agenda
Agenda Teva’s 20/20 Target Barr Acquisition Q2’08 Financial Results
Slide 4: Teva's 20/20 Target
Agenda Teva’s 20/20 Target Barr Acquisition Q2’08 Financial Results
Slide 5: Teva's 20/20 Target
Teva’s 20/20 Target By 2012, we expect to: Double our business Reach revenues of $20 billion Exceed net income margins of 20% Barr provides upside to our 20/20 target!
Slide 6: Key Pillars of Our Strategy
Key Pillars of Our Strategy Increase Increase Teva’s Teva’s Extend leadership in U.S. market market share share in in Establish leadership in key EU and International markets key key markets markets Double R&D capabilities Double Double our our Focus on first-to-market / Paragraph IVs product produc
Slide 7: 2012 Projected Sales
2012 Projected Sales CAGR - 2 $19.0 – 21.5 B $3.2 – 4.0 B 18 – 23% CAGR 15-18% $5.1 – 5.7 B 18 – 21% $9.4 B International $1.4 B Europe $2.2 B $9.5 – 11.5 B 13 – 17% North $5.2 B America TAPI $0.9 B $0.6 B Note: 2012 totals do not sum; reflect company’s projected overall range
Slide 8: What You Can Expect From Teva
What You Can Expect From Teva Continuous profitable growth Expanding leadership in key markets Long-term perspective: product portfolio, capacity and service Balanced business model & attractive financial returns
Slide 9: Barr Acquisition
Agenda Teva’s 20/20 plan Barr Acquisition Q2’08 financial results
Slide 10: Compelling Value Creation
Compelling Value Creation + Strong strategic fit – supports all 5 pillars of our strategy Attractive economics Extends global market leadership Expands product portfolio and pipeline Exceeds 20/20 strategic target
Slide 11: Highly Attractive Financial Outcome
Highly Attractive Financial Outcome Projected 2008 combined revenues exceeds $13.7 billion Representing 15% growth over combined 2007 Anticipate strong cash flow from operations Over $3 billon in 2009 Over $5 billion in 2012 Accretive to GAAP earnings Within the fourth quarter following closing Cash
Slide 12: Significant Synergy Opportunity
Significant Synergy Opportunity At least $300 million in cost synergies by 2011 (fast ramp up) Synergies from manufacturing and API capabilities R&D synergies from pipeline reorganization Reduces recruiting requirement to achieve 2X goals SG&A synergies from infrastructure overlap Does not include s
Slide 13: Maintaining Strong Balance Sheet and Credit Profile
Maintaining Strong Balance Sheet and Credit Profile Strong liquidity position Maintain $1 billion post closing cash on hand Balance sheet flexibility provides liquidity for future strategic opportunities 3/31/08 3/31/08 Deal adjusted Debt & Minority Interest $5.4B $7.9B Equity $14.4B $16.5B Debt / 3
Slide 14: Financial Deliverables
Financial Deliverables + GAAP EPS accretive in fourth quarter after closing New growth drivers Large synergy opportunities Improves cash flow Maintains strong balance sheet and credit profile
Slide 15: Q2'08 Financial Results
Agenda Teva’s 20/20 plan Barr Acquisition Q2’08 Financial Results
Slide 16: Quarterly Highlights
Quarterly Highlights Financial Results Record quarterly sales of $2,823 million Record cash flow from operating activities of $806 million Record R&D investments of $198 million or 7% of sales Generics Successful launches of Bupropion XL 150 and Risperidone Continued investment in generic pipeline R
Slide 17: Development of Results (Q2 2008)
Development of Results (Q2 2008) Sales Net Income EPS ($ millions) ($ millions) ($) +18% +5% +3% 0.65 0.63 2,823 2,386 539 515 Q2/2007 Q2/2008 Q2/2007 Q2/2008 Q2/2007 Q2/2008
Slide 18: Development of Results (H1 2008)
Development of Results (H2 2008*) Sales Net Income EPS ($ millions) ($ millions) ($) +21% +25% +23% 5,395 1,068 1.29 4,466 857 1.05 H2/2007 H2/2008 H2/2007 H2/2008 H2/2007 H2/2008 * Non-GAAP numbers; Q1’08 includes in process R&D of $382M
Slide 19: Q2 2004-2008 – North America Pharmaceutical Sales
Q2 2004-200 – North America Pharmaceutical Sales ($ millions) +12% CAGR 22% 1,505 1,341 1,260 676 624 Q2/04 Q2/05 Q2/06 Q2/07 Q2/08
Slide 20: Unparalleled Leadership in the U.S.
Unparalleled Leadership in the U.S. Pro forma number of TRxs per day 1.6 M Teva’s US market share (TRx) will expand from Barr ~18% to ~24% 2x 0.8 M 0.6 M Teva 0.5 M 596.1 M 295.4 M 236.6 M 202.8 M Mylan Watson Sandoz 5
Slide 21: The Largest Product Pipeline in the Industry
The Largest Product Pipeline in the Industry (as of July 23, 2008)
Slide 22: Q2 2004-2008 – Europe Pharmaceutical Sales
Q2 2004-200 – Europe* Pharmaceutical Sales ($ millions) +25% CAGR 29% 762 610 533 356 279 Q2/04 Q2/05 Q2/06 Q2/07 Q2/08 * Includes EU member states, Switzerland & Norway
Slide 23: Europe – Registration Status
Europe – Registration Status (as of June 30, 2008) 2006 2007 2008 Country Approved Approved Approved Pending EMEA 0 1 2 7 Hungary 22 15 13 132 U.K. 19 48 35 159 France 30 50 23 151 Germany 16 50 18 143 Netherlands 30 38 17 153 Other 181 611 404 2411 TOTAL 298 813 512 3,156 * Total count of formulati
Slide 24: Q2 2004-2008 – International Pharmaceutical Sales
Q2 2004-200 – International Pharmaceutical Sales ($ millions) + % CAGR 400 44% 292 234 114 94 Q2/04 Q2/05 Q2/06 Q2/07 Q2/08
Slide 25: API – Overview
API – Overview ($ millions) Third Party +10% Internal 1,460 CAGR 16% 1,327 CAGR 2004-2007 Third Party: 4% 561 4% Internal: 27% 1,067 940 587 524 501 +35% 452 899 740 21% 334 156 9% 543 143 439 296 55% 191 2004 2005 2006 2007 Q2/07 Q2/08
Slide 26: Net R&D Expenses
Net R&D Expenses ($ millions) Expect to reach a run-rate of 7.5% of sales by the end of 2008 6.2% 5.9% R&D – Net % of sales 7.0% 7.1% +45% 581 495 ` 7.0% 369 5.7% 338 198 137 2004 2005 2006 2007 Q2/07 Q2/08
Slide 27: Q2 2008 – Cash Flow Highlights
Q2 2008 – Cash Flow Highlights ($ millions) Q207 Q307 Q407 Q108 Q208 1-6/07 1-6/08 Net Income* 515 525 570 529 539 857 1,068 Cash flow from operating activities 437 332 545 746 806 936 1,552 Purchase of fixed assets (net of proceeds from sale) 106 104 142 139 132 255 271 Dividends** 75 73 79 95 106
Slide 28: Financial Strength
Financial Strength June 30, March 31, June 30, ($ billions) 2008 2008 2007 Total Equity 15.08 14.40 12.06 Total Debt 4.79 5.38 5.51 of which: Short Term 1.47 2.03 1.52 Long Term* 3.32 3.35 3.98 Leverage** 24% 27% 31% * Includes both converts of $1.4 Billion and straight debt of $1.5 Billion issued o
Slide 29: Summary
Summary 5 year strategic plan – 20/20 target Barr acquisition – upside to 20/20 target Barr Acquisition – compelling value creation Strategic fit – supports 5 pillars of our strategy Attractive economic value Extends global market leadership Expands product portfolio and pipeline Q2’08 Financial Res
Slide 30: Thank You!
Thank You! 29 wit TEVA PHARMACEUTICAL INDUSTRIES LTD.
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