Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 36th Annual J.P. Morgan Healthcare Conference (January 2018)
11 slides from Teva Pharmaceutical Industries's conference presentation, Jan 8, 2018
Slide 1: Teva Pharmaceutical Industries Ltd. at the 36th Annual J.P. Morgan Healthcare Conference
Teva Pharmaceutical Industries Ltd. 36th Annual J.P. Morgan Healthcare Conference Kåre Schultz President & CEO January 8, 2018
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: Teva's Current Reality
Teva’s Current Reality Challenges ahead for Teva require us to take significant steps with a sense of urgency • Significant financial obligations in the coming 4 years • Generic competition to our largest branded product COPAXONE® • Challenging environment in our largest generic market - the U.S. •
Slide 4: Restructuring Plan Goal $3bn
Restructuring Plan Goal Generate spend base reduction of $3 billion vs. 2017 ~16 billion 2019 (FY impact) 2018 . $1.5bn+ $3bn 4 | CONFIDENTIAL
Slide 5: Highlights of the $3B Restructuring Plan - By the Numbers
Highlights of the $3B Restructuring Plan - By the Numbers – More than half of the cost reductions are expected to be achieved by end of 2018; full $3 billion by end of 2019 – Reductions to come from all elements of the cost base – Global workforce to be reduced by approximately 14,000* – more than 2
Slide 6: Key Areas of Focus
Key Areas of Focus The restructuring plan will focus on: – Deployment of a new unified and simplified organizational structure – Substantial optimization of the generics portfolio globally – Closures or divestments of a significant number of facilities – Thorough review of all R&D programs across th
Slide 7: Substantial Optimization of the Global Generics Portfolio
Substantial Optimization of the Global Generics Portfolio Adjust pricing of Discontinuation of certain portfolio Downsizing of the segments to better products that do not manufacturing, supply reflect current cost meet Teva’s new and R&D network structure and market profitability benchmark condition
Slide 8: Concerted Effort to Improve Our Financial Profile
Concerted Effort to Improve Our Financial Profile Our absolute priority is to improve our financial profile through the stabilization of the company’s operating profit and cash flow: – Suspension of dividends on ordinary shares and ADRs – Committed to utilizing cash flow to pay down debt over the ne
Slide 9: Debt Movements
Debt Movements Teva remains focused on deleveraging – Proceeds from Women’s Health U.S. divestitures (Paragard & Plan B) used to make prepayment of $1.77 billion on our 5Y and 3Y term loans maturities 5 Year Debt Maturities ($b) $5.0 4.0 4.3 4.2 2.9 $3.0 1.7 $1.0 2018 2019 2020 2021 2022 9
Slide 10: Clear Path Forward – What to Look for in 2018
Clear Path Forward – What to Look for in 2018 – Simpler, leaner and more agile organization – More than half of $3 billion in cost reductions is expected to be achieved by end of 2018 – Continued debt reduction – Focused support of fremanezumab and AUSTEDO® – R&D spend that maximizes ROI We will ens
Slide 11: Question and Answer Session
Question and Answer Session 11
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