Teva Pharmaceutical Industries Limited · TASE:TEVA

Teva Pharmaceutical Industries — Q4 2006 Earnings Presentation

25 slides from Teva Pharmaceutical Industries's earnings presentation, Feb 13, 2007

  1. Slide 1: Teva Pharmaceutical Industries Ltd. Capital Market

    Teva Pharmaceutical Industries Ltd. Capital Market Dan Suesskind, CFO February 13, 2007 1

  2. 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

  3. Slide 3: Development of Results (Q4)

    Development of Results (Q4) Sales Net Income Earnings per Share $ Millions $ Millions $ % 2 % % 63 4 18 UP UP Up 433 0.53 2,277 0.45 305 1,401 Q4/2005 Q4/2006 Q4/2005 Q4/2006 (*) Q4/2005 Q4/2006 (*) 3 •Before non-recurring items income, after tax : Q4/2006 27M$

  4. Slide 4: Strong Performance

    Strong Performance 2006 2005 %Change Sales ($ Millions) 8,408 5,250 60% Net Income ($ Millions) 1,867 1,072 74% Earnings per ADR * (diluted $) 2.30 1.59 45% Cash Flow from Operations 2,058 1,370 50% P/E Ratio 2006 (F.C. Consensus $2.34) 15 P/E Ratio 2007 (F.C. Consensus $2.13) 16 Market Capitalizati

  5. Slide 5: Q4/2006 – Sales By Region

    Q4/2006 – Sales By Region Q4/06: $8,408 Million Q4/05: $1,401 Million 62 North North America America 59% 62% Europe* International Europe* International 17% 10% 24% 28% 10 28 * Western Europe and Hungary 5

  6. Slide 6: Top U.S. Pharmaceutical Companies

    Top U.S. Pharmaceutical Companies (In thousands) Generic companies only All pharmaceutical companies Total Rx’s Total Rx’s 1 Teva USA 415,716 +16.1% 1 Teva USA 419,932 +21.0% 2 Mylan 251,365 +11.9 2 Pfizer 307,796 -5.2 3 Sandoz 212,249 +4.8 3 Novartis 294,608 +4.5 4 Watson 202,568 +7.4 4 Mylan 253,4

  7. Slide 7: Q4 2006 – North America Pharmaceutical Sales

    Q4 2006 – North America Pharmaceutical Sales ($ Millions) Up 56% 1,213 769 776 544 472 Q4/02 Q4/03 Q4/04 Q4/05 Q4/06 7

  8. Slide 8: U.S. Generic Industry’s Largest Pipeline

    U.S. Generic Industry’s Largest Pipeline 162 ANDAs – over $92 billion in total brand sales 78 Paragraph IV Filings 42 First-to-File – over $36 billion in total brand sales As of February 1, 2007 8

  9. Slide 9: Q4 2002-2006 – Europe Pharmaceutical Sales

    Q4 2002-2006 – Europe* Pharmaceutical Sales ($ Millions) Up 35% 513 360 319 215 153 Q4/02 Q4/03 Q4/04 Q4/05 Q4/06 * Western Europe and Hungary 9

  10. Slide 10: Registration Status – Europe

    Registration Status – Europe (As of Dec. 31, 2006) 2004 2005 2006 Country Approved Approved Approved Pending Hungary 21 36 22 97 U.K. 24 19 19 105 France 22 18 30 121 Germany 15 26 16 83 Netherlands 34 15 30 82 Others 48 255 181 1,398 TOTAL 164 369 298 1,886 10

  11. Slide 11: Q4-2006 – International (ROW) Pharmaceutical Sales

    Q4-2006 – International (ROW) Pharmaceutical Sales ($ Millions) Up 191% 361 124 121 88 71 Q4/02 Q4/03 Q4/04 Q4/05 Q4/06 11

  12. Slide 12: Q4 2006 – Copaxone In-Market Global Sales

    Q4 2006 – Copaxone® In-Market Global Sales ($ Millions) Up 20% US 1,414 Non US 1,176 Up 17% 498 26% 936 394 377 720 323 916 17% 311 35% 782 139 103 225 625 238 220 495 9% 2003 2004 2005 2006 Q4/05 Q4/06 12

  13. Slide 13: API - Overview

    API - Overview ($ Millions) Internal / third party sales Up 24% third party 1,327 internal 1,067 940 587 Up 12% 524 654 501 Up 36% 371 740 Down 5% 543 295 281 439 141 Up 8% 283 152 154 Down 16% 129 2003 2004 2005 2006 Q4/05 Q4/06 13

  14. Slide 14: Q4-2006 – Consolidated Statements of Income – Adjusted

    Q4-2006 – Consolidated Statements of Income – Adjusted ($ Millions) % YTD % of Sales Q4/06 Q4/05 Change 2006 Q4/06 Q4/05 2006 Sales 2,277 1,401 63 8,408 100 100 100 Gross profit 1,103 676 63 4,354 48 48 52 R&D – net 137 98 40 495 6 7 6 SG&A expenses 478 217 120 1,572 21 15 19 Operating income 488 36

  15. Slide 15: 2006 – Consolidated Statements of Income – Adjusted

    2006 – Consolidated Statements of Income – Adjusted ($ Millions) % % of Sales 2006 2005 Change 2006 2005 Sales 8,408 5,250 60 100 100 Gross profit 4,354 2,480 76 52 47 R&D – net 495 369 34 6 7 SG&A expenses 1,572 799 97 19 15 Operating income 2,287 1,312 74 27 25 Financial income/ (expense) net (95)

  16. Slide 16: Net R&D Expenses

    Net R&D Expenses ($ Millions) 3 2 % GR = CA 495 369 338 214 137 98 2003 2004 2005 2006 Q4/2005 Q4/2006 16

  17. Slide 17: Net Income 2003-2006

    Net Income 2003-2006 ($ Millions) 1,867 4 5 % R = CA G 1,072 965 618 433 305 2003* 2004* 2005 2006 Q4/05 Q4/06 * Before non- non-recurring expenses (income) after tax. 17 2003 – ($73.2M); 2004 - $632.8M

  18. Slide 18: Q4 2006 – Cash Flow Highlights

    Q4 2006 – Cash Flow Highlights ($ Millions) Q4/06 Q3/06 Q2/06 Q1/06 Q4/05 Yr 2006 Yr 2005 Net Income (loss) 460 606 488 (1,009) 305 546 1,072 Income and expenses not involving cash flow 231 94 99 1,306 64 1,730 209 Changes in working capital 73 93 (375) (9) 110 (218) 89 Cash flow from operating acti

  19. Slide 19: Consolidated Balance Sheet

    Consolidated Balance Sheet ($ Millions) Dec. 31 Dec. 31 % Sep. 30 2006 2005 Change 2006 CURRENT ASSETS 7,640 5,505 39 7,242 OF WHICH: INVENTORY 1,878 1,114 69 1,868 INVESTMENTS AND OTHER ASSETS 613 424 45 805 PROPERTY, PLANT & EQUIPMENT-NET 2,193 1,361 61 2,137 INTANGIBLE ASSETS – NET 10,025 3,097 2

  20. Slide 20: 2002-2006 – Cash Flows from Operating Activities

    2002-2006 – Cash Flows from Operating Activities ($ Millions) Up 50% 2,058 1,370 1,246 627 354 2002 2003 2004 2005 2006 20

  21. Slide 21: Dividends

    Dividends Total for 2006 (NIS 1.42 /share) $ 247,000,000 Q4/06 suggested dividend (NIS 0.40 /share) $ 72,000,000 Q3/06 suggested dividend (NIS 0.34 /share) $ 59,900,000 Q3/06 interim dividend (NIS 0.34 /share) $ 58,500,000 Q1/06 interim dividend (NIS 0.34 /share) $ 56,600,000 Total for 2005 (NIS 1.2

  22. Slide 22: Q4 2006 – Financial Strength

    Q4 2006 – Financial Strength ($ billions) Dec. 31 Dec. 31 2006 2005 Total Equity 11.14 6.04 Total Debt 5.33 2.15 of which: short-term 0.74 0.38 long-term 4.59* 1.77* Leverage** 0.32 0.26 * Includes both converts of $1.4 bn and straight debt of $1.5 mn issued on Q1/06 ** [DEBT/(Debt+Equity)] 22

  23. Slide 23: NASDAQ 100 Index

    NASDAQ 100 Index As of Feb. 2, 2007 1 MSFT Microsoft Corporation $ 296,781,587,400 2 CSCO Cisco Systems, Inc. $ 164,813,593,660 3 INTC Intel Corporation $ 122,412,180,000 4 GOOG Google Inc. $ 107,560,840,500 5 ORCL Oracle Corporation $ 90,273,767,220 6 AMGN Amgen Inc. $ 81,014,675,100 7 AAPL Apple C

  24. Slide 24: Teva & DJ – 1984-2007

    19 /1 1/ 19 19 84 /1 1/ 21.11.84 19 DJ 1,202 19 85 /1 1/ Teva $ 0.0781 19 DJ 19 86 /1 Teva 1/ 19 19 87 /1 1/ 19 19 88 /1 1/ 19 19 89 /1 1/ 19 19 90 /1 1/ 19 19 91 /1 1/ 19 19 92 /1 1/ 19 19 93 /1 1/ 19 19 94 /1 1/ 19 19 95 Teva & DJ – 1984- 2007 /1 1/ 19 19 96 /1 1/ 19 19 97 /1 1/ 19 19 98 /1 1/ 19

  25. Slide 25: Teva Pharmaceutical Industries Ltd. Capital Market

    Teva Pharmaceutical Industries Ltd. Capital Market Dan Suesskind, CFO February 13, 2007 25

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