Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — J.P. Morgan 2021 Global High Yield & Leveraged Finance Conference
18 slides from Teva Pharmaceutical Industries's conference presentation, Mar 2, 2021
Slide 1: J.P. Morgan 2021 Global High Yield & Leveraged Finance Conference
Teva Pharmaceutical Industries Ltd. J.P. Morgan 2021 Global High Yield & Leveraged Finance Conference Eli Kalif, CPA Executive Vice President, Chief Financial Officer March 2, 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forw ard-looking statements w ithin the meaning of the Private Securities Litigation Reform Act of 1995, w hich are based on management’s current beliefs and expectations and are subject to substantial risks and uncertai
Slide 3: Highlights
Highlights Financial Business Met key components of 2020 financial − Successfully navigated COVID-19 pandemic with minimal impact on our supply chain, R&D programs and product launches guidance: − AUSTEDO® rapid growth continues − Revenues of $16.7 billion − AJOVY® global sales bolstered by launch o
Slide 4: Revenue Development
Revenue Development $ millions 4,468 4,357 4,454 4,149 4,177 4,093 332 344 307 3,978 317 342 314 3,870 578 565 316 572 335 521 582 565 488 529 1,184 1,237 1,264 1,402 1,183 1,163 1,116 1,001 2,373 2,300 2,047 2,071 2,051 2,082 2,047 2,017 Other Activities International Markets Europe North America Q
Slide 5: AUSTEDO Continues to Grow
® AUSTEDO® Continues to Grow AUSTEDO® Revenues By Quarter AUSTEDO® TRx Count Per Quarter Highlights ($ million) 185 40,000 168 Net global sales of $638 million in 35,503 161 35,000 2020, an increase of 65% vs. 2019 136 30,000 122 ~36K prescriptions dispensed in Q4 105 2020 25,000 96 20,000 74
Slide 6: AJOVY Sales Bolstered by Auto-Injector Launch
AJOVY® Sales Bolstered by Auto-Injector Launch AJOVY® Weekly Normalized TRx Count AJOVY® NBRx Share* Highlights 18,000 • Net global sales of $183 million in 2020: 16,000 • U.S. - $134 million, an increase of 45% vs. 2019 30% • Europe - $31 million 28% 14,000 28% 25% 25% 24% 24% 24% 12,000 • U.S. nor
Slide 7: 2021 Non-GAAP Outlook
2021 Non-GAAP Outlook $ billions, except EPS 2021 Outlook 2020 Actual November 2020 Outlook Revenues* 16.4 - 16.8 16.7 16.5 - 16.8 COPAXONE ~$1,050 million $1,337 million ~$1,300 million AUSTEDO ~$950 million $638 million ~$650 million AJOVY ~$300 million $183 million ~$200 million Operating Income
Slide 8: Gross Margin Improvement Program focused on 5 key levers
Gross Margin Improvement Program focused on 5 key levers Take a total Cost of Continue the focus and Ensure operational Design & digitize Develop an agile, Ownership lens to drive accelerate the ongoing excellence and build end-to-end supply chain repeatable and reliable procurement savings network
Slide 9: Pharmaceutical Manufacturing Sites
Pharmaceutical Manufacturing Sites Number of sites 85 80 80 75 73 70 65 64 61 60 55 50 2017 2018 2019 2020 Footprint will continue to shrink - 11 additional sites announced to be divested/closed |9|
Slide 10: Spend Base
Spend Base -4% $ millions 12,745 12,271 -3% 3,406 3,313 8,185 7,925 (64%) (65%) 2,206 2,126 (65%) (64%) 4,561 4,346 1,200 1,187 (36%) (35%) COGS (35%) (36%) OPEX Q4 2019 Q4 2020 FY 2019 FY 2020 Revenues 4,468 4,454 16,887 16,659 GP% 50.6% 52.3% 51.5% 52.4% OP% 23.8% 25.6% 24.5% 26.3% | 10 |
Slide 11: Operating Margin Expansion
Operating Margin Expansion Non-GAAP operating margin % 28.5% 28.0% 28.0% 27.8% 27.5% 26.8% 27.0% 26.5% 26.3% 25.9% 26.0% 25.5% 25.0% 24.5% 24.5% 24.0% 2017 2018 2019 2020 2021 Guidance* 2023 Target | 11 | * Estimated margin based on 2021 guidance
Slide 12: Free Cash Flow
Free Cash Flow $ millions 974 582 Cumulative 551 4 Quarters: 506 471 $ 2.1 bn Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Act Act Act Act Act | 12 | * Free cash flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected fo
Slide 13: Cash-to-Earnings
Cash-to-Earnings $ millions +203 +57 Long-range target: 80% 2,830 2,110 2,627 2,053 78% 75% FY-19 FY-20 FY-19 FY-20 FY-19 FY-20 Free Cash Flow Cash-to-earnings* Non-GAAP Net Income | 13 | • * Free Cash Flow / non-GAAP Net income
Slide 14: Debt Reduction
Debt Reduction $ billions Net Debt 24.9 24.3 23.9 23.8 23.7 4.7 4.9 4.9 4.8 4.9 EBITDA MAT Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net Debt / EBITDA MAT* 5.32 4.95 4.90 4.92 4.83 Leverage 64% 64% 64% 71% 70% | 14 | * Teva's Net Debt/EBITDA MAT covenant ratio limits are 6.0x for H1 2020 and 5.75x for
Slide 15: Net Debt Development
Net Debt Development $ billions $36.0 $34.0 $32.0 $30.0 $28.0 $26.0 $24.0 $22.0 $20.0 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 | 15 |
Slide 16: Long-Term Financial Targets
Long-Term Financial Targets To be achieved by year-end 2023 Operating income margin (2)(3) Cash-to-earnings(1)(3)(4) Net debt / EBITDA (3)(5) 28% >80% <3X Committed to utilizing cash flow to pay down debt; we do not plan to raise equity (1) Free cash flow includes cash flow generated from operating
Slide 17: Thank you.
Thank you.
Slide 18: Slide 18