31 slides from Teva Pharmaceutical Industries's earnings presentation, Aug 1, 2007
Slide 1: Investor Lunch Tel Aviv
Lest TEVA PHARMACEUTICAL INDUSTRIES LTD. Teva Pharmaceutical Industries Ltd. mt Investor Lunch Tel- Aviv Dan Suesskind, CFO — August 1 , 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements TODAY’S PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE TEVA’S FUTURE RES
Slide 3: Development of Results (Q2)
Development of Results (Q2) Sales Net Income Earnings per Share $ Millions $ Millions $ Do Do % wn wn 10 5% 5% UP 2,386 0.66 0.63 2,172 541 515 Q2/2006 Q2/2007 Q2/2006* Q2/2007 Q2/2006* Q2/2007 * Before non-recurring items, after tax : Q2/2006- $52M
Slide 4: Exchange Rates (Quarterly Average)
Exchange Rates* (Quarterly Average) Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 USD:NIS 91% 94% 95% 97% 100% (4.08) (4.21) (4.26) (4.39) (4.50) USD:EURO 94% 96% 96% 99% 100% (0.74) (0.76) (0.76) (0.78) (0.79) 86% 90% 94% 101% 100% USD:HUF (183.98) (192.29) (201.37) (216.04) (213.37) 98% 105% 102% 100% 100% USD:CA
Slide 5: Q2/2007 – Sales By Region
Q2/2007 – Sales By Region !"#$% &'() !"($% *# ) North America, 59% North America, 60% TSP, 6% ROW, 2% ROW, 2% TSP, 2% Latin America, Latin America, Europe, 25% Israel, 6% Europe, 24% 6% Israel, 4% CEE, 4%, 4% CEE, 4%,
Slide 6: ! ""#- . / %) 56(4 &,4 * &+* * (" (#( (+ +",
! ""#- . / %) 0 56(4 3 &,4 12 * &+* * (" (#( (+ +", !"& !"+ !", !"( !"#
Slide 7: API, product breadth, vertical integration
’ 6 6 7 iiaall s a nncc rccees a n ur FFiin ssoou RRee API API Product Product Vertical Vertical Breadth Breadth Integration Integration
Slide 8: 153 ANDAs – 80 Paragraph IV Filings
5 1 8’ 7 6 153 ANDAs – over $89 billion in total brand sales 80 Paragraph IV Filings 40 First-to-File – over $37 billion in total brand sales As of July 30, 2007
Slide 9: Total Rx's – Generic and All Pharmaceutical Companies
65 6 Generic companies only All pharmaceutical companies Total Rx’s Total Rx’s 1 Teva USA 430,296 1 Teva USA 440,561 2 Mylan 269,613 2 Pfizer 280,222 3 Watson 221,845 3 Novartis 274,201 4 Sandoz 194,976 4 Mylan 271,611 5 Barr 137,680 5 Watson 221,848 6 Mallinckrodt 103,072 6 Barr 137,780 7 Actavis 8
Slide 10: @ A. B $; *"! "!+" @ A . B $*"
6 1 29 : @ A. B $; *"! "!+" @ A . B $*" , ,4 +(&4 2 8- 1 ,4 6 ? +&4 2 > ?8 (;4 C - 1 * +4 > (&4 2 8 ;+4 = &+4 = +,4 <8 ,4 ";4 ,;4 4 @ A. B $*; < 6 @ A. B $*, 1 - 1 , + +4 &, 4 1 *+;4 6 ? +(4 )8 ** &4 6 &*4 $ ! "# 2 8 #*4 > "#4 & %!# "+4 > "&4 = ,'4 "#4 ,(4 ##4 :C AD 8*& ""#
Slide 11: F G A
E 7 E F G A E 2 6 6 A 8 6 ""( D 8*+ ""( ""( ""# H? A ? ) D ""( ? D 8* ""( ) > ""(
Slide 12: CFCs to HFAs
I 2?C 8) / 0 100% 80% HFAs CFCs 60% 40% 20% 0% ! IMS NPA 6/29/07
Slide 13: HFA product shares
I E 2?) / 0 80% 70% 60% 50% ProAir HFA 40% Proventil HFA 30% Ventolin HFA 20% Xopenex HFA 10% 0% ! IMS NPA 6/29/07
Slide 14: ! ""#- H 6: / %) 56*&4 &"4 ,,( +; &," #+ *;& !"&
! ""#- H 6: / %) 0 56*&4 &"4 3 12 ,,( +; &," #+ *;& !"& !"+ !", !"( !"#
Slide 15: Approvals by country (as of June 30, 2007)
27 -H 6 (As of June 30, 2007) 2005 2006 2007 Country Approved Approved Approved Pending Hungary 36 22 5 94 U.K. 19 19 15 101 France 18 30 20 103 Germany 26 16 21 71 Netherlands 15 30 10 97 Others 255 181 162 1,580 TOTAL 369 298 233 2,046
Slide 16: ($ Millions)
! ""#– / 2 C0 ($ Millions) 56 (4 4 &+( 12 3 +# #, * ( *", #& !"& !"+ !", !"( !"#
Slide 17: ! ""#- 6? J ) > / %) * +*+ * *#( ' +;'
! ""#- 6? J ) 1 > / %) 0 * +*+ * *#( ' +;' ' ;&( &;+ #" &** 56 &4 , +&( ;*( &,& &4 #' *,* (, * & +;, +4 &* ', ""& ""+ "", ""( !"( !"#
Slide 18: Third party and internal sales ($ Millions)
G ($ Millions) ! 6 8 Third Party 1,327 Internal 1,067 940 587 524 654 501 371 740 357 334 Down 6% 543 439 145 143 Down 1% 283 212 Down 10% 191 2003 2004 2005 2006 Q2/06 Q2/07
Slide 19: Q2 2007 – Consolidated Statements of Income
Q2 2007 – Consolidated Statements of Income / %) 0 4 4 A !"# !"(/ :0 7 !"# !"(/ :0 ( ")* # # # + ," "# % !# %%! "# -./0 " ,# %!# %! %# +. & ,*1 "% %# 1!# ! "# 2 *" 3 # *!# "! *# 4 (& 3 ) % 3)*# ! "# ! *# 5 6 & *1 *% 3"# *! ,# 1! 1# . ,*, ,+* ,4 * (4 +;4 H 7 6 / 0 "(& "(( ,4 &- )# # * Before non-recu
Slide 20: Q2 2007 – Consolidated Statements of Income
Q2 2007 – Consolidated Statements of Income / %) 0 4 4 A !"# *!"# 7 !"# *!"# ( ")* ) %# # # + ," " # % !# ,1! 1# -./0 " "% # %!# *! %# +. & ,*1 ,%* "# 1!# ! 1# 2 *" ,,* ,"# *!# ! ,# 4 (& 3 ) ) 3 # ! "# ! "# 5 6 & *1 ,) % # *! ,# !# . ,*, &+ ,*4 * (4 *(+4 H 7 6 / 0 "(& "+ ,"4 &- )# )#
Slide 21: R&D Expenses ($ Millions)
R&D Expenses ($ Millions) Gross R&D Grants & Participations R&D - Net 3 '4 12 506 500 11 450 383 400 356 14 350 18 300 243 250 495 30 200 369 138 150 338 124 1 4 100 213 120 137 50 0 2003 2004 2005 2006 Q2/06 Q2/07
Slide 22: Earnings per share by quarter
H 7 6 / %0 Up 50% 0.8 0.74 0.7 0.66 0.63 0.6 0.53 0.5 0.42 0.4 0.3 0.2 0.1 0 Q2/06 * Q3/06 Q4/06 * Q1/07 Q2/07 * Before non-recurring items, after tax : Q2/2006 52M$, Q4/2006 (27M$)
Slide 23: Quarterly results
. / %) 0 650 606 600 541 515 550 500 450 433 400 342 350 300 250 200 150 100 50 0 Q2/06 * Q3/06 Q4/06* Q1/07 Q2/07 * Before non-recurring items, after tax : Q2/2006- $52M and Q4/2006-$(27M)
Slide 24: ! ""#– G E7 / %) !"# *!"# +!"( &!"( !"( *!"( L ""(
! ""#– G E7 7 / %) 0 !"# *!"# +!"( &!"( !"( *!"( L ""( 5 8 ( 9 % % ", ,* ** ,)) 8 19 %,* : (; ," ,11 *% 1" )) %) 7 < 3 3 % , "%%* "%) & * ,1 1 * 1 "** 8 (9 /7 % %) %1 % %% 1 4 (; %* ) % ) *%) *% * ,*" : 8 > :: . 6 >8 6 7 6 A6 6 86 K 6 / 0 6
Slide 25: Balance sheet
! ""#– I / %) 0 Jun 30, Mar 31, % Jun 30, 2007 2007 Change 2006 : )* ) )# *** ; =57 , ), "# 57 2 " *)* # *1 ( . < 3 ", )) # 1 5 6( 1 1%) 3"# + ;( ( ) ) , # ))" * #+( *"# "# *;&(; : > 6( ," ,*, # "11, ; = /6 % , % # %* > > 6( "" " 1 3 # )*1 ? 5 " "* "# "" : 7 6( /6 ))" ))" # % ( @ < %) ")) *# 11 > M
Slide 26: Dividend 2002-2006
Dividend 2002-2006 (In Million $) Up 42% 247 +(4 3 12 174 134 88 75 75 54 2002 2003 2004 2005 2006 Q1/07 Q2/07
Slide 27: Q2/2007 – Financial Strength
Q2/2007 – Financial Strength / %I 0 D &" ) &* ""# ""# (< !*A ! "1A (/ 6 %! % A %! %"A ; = 3 ! % A ! % A ( 3 "! 1)A ,! A >7 ! " ! "" : N HI !/ > OHK 80 P
Slide 28: NASDAQ Top 20 Companies
NASDAQ Top 20 Companies As of July 27, 2007 MSFT Microsoft Corporation $ 281,169,443,801 CSCO Cisco Systems, Inc. $ 175,883,650,225 INTC Intel Corporation $ 136,767,400,000 AAPL Apple Inc. $ 124,422,769,800 GOOG Google Inc. $ 118,488,202,080 ORCL Oracle Corporation $ 100,863,732,060 QCOM QUALCOMM In
Slide 29: Teva Vs. Dow Jones 1984-2007
01 /0 7/ 84 01 /0 7/ 85 01 /0 7/ 86 01 /0 7/ 87 21.11.84 DJ 01 Teva DJ 1,202 /0 7/ 88 Teva $ 0.0781 01 /0 7/ 89 01 /0 7/ 90 01 /0 7/ 91 01 /0 7/ 92 01 /0 7/ 93 01 /0 7/ 94 01 /0 7/ 95 01 /0 7/ 96 01 /0 7/ 97 Teva Vs. Dow Jones 1984-2007 01 /0 7/ 98 01 /0 7/ 99 01 /0 7/ 00 01 /0 7/ 01 $ 45.53 01 /0 7
Slide 30: Teva Vs. Generic Index and NASDAQ 2005-2007
03 /0 1 03 /05 /0 2 03 /05 /0 BRL WPI 3 ALO Teva MYL PRX IPXL $29.2 GI 03 /05 /0 4 03 /05 /0 5 NASDAQ 03 /05 /0 6 TEVA PHARM 03 /05 /0 20% 8% 38% 2% 24% 7% 7 03 /05 /0 8 03 /05 /0 9 03 /05 /1 0 03 /05 /1 1 03 /05 /1 2 03 /05 /0 1 03 /06 /0 2 03 /06 /0 3 03 /06 /0 4 03 /06 /0 5 03 /06 /0 6 03 /06 /0
Slide 31: Investor Lunch — Tel Aviv
Lest TEVA PHARMACEUTICAL INDUSTRIES LTD. Teva Pharmaceutical Industries Ltd. Investor Lunch — Tel- Aviv Dan Suesskind, CFO August 1 , 2007 —q