Teva Pharmaceutical Industries Ltd.
Fourth Quarter and Full Year 2020 ResultsFebruary 10, 2021
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 uncertainties, both know n and unknow n, that could cause our future results, performance or achievements to differ signif icantly from that expressed or implied by such forw ard-looking statements. Important factors that could cause or contribute to such differences include risks relating to:
• our ability to successfully compete in the marketplace, including: that w e are substantially dependent on our generic products; consolidation of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of signif icant products; our ability to develop and commercialize biopharmaceutical products; competition for our specialty products, including AUSTEDO®, AJOVY® and COPAXONE®; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights;
• our substantial indebtedness, w hich may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further dow ngrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
• our business and operations in general, including: uncertainty regarding the magnitude, duration, and geographic reach of the COVID-19 pandemic and its impact on our business, f inancial condition, operations, cash f low s, and liquidity and on the economy in general; our ability to successfully execute and maintain the activities and efforts related to the measures w e have taken or may take in response to the COVID-19 pandemic and associated costs therew ith; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property law s; challenges associated w ith conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to w hich w e are subject or delays in governmental processing time due to travel and w ork restrictions caused by the COVID-19 pandemic; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; signif icant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for grow th if w e sell assets;
• compliance, regulatory and litigation matters, including: failure to comply w ith complex legal and regulatory environments; increased legal and regulatory action in connection w ith public concern over the abuse of opioid medications and our ability to reach a f inal resolution of the remaining opioid-related litigation; scrutiny from competition and pricing authorities around the w orld, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; potential liability for patent infringement; product liability claims; failure to comply w ith complex Medicare and Medicaid reporting and payment obligations; compliance w ith anti-corruption sanctions and trade control law s; and environmental risks;
• other f inancial and economic risks, including: our exposure to currency f luctuations and restrictions as w ell as credit risks; potential impairments of our intangible assets; potential signif icant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;
and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2020 (“Annual Report”), including in the sections captioned "Risk Factors" and “Forw ard-looking statements.” Forw ard-looking statements speak only as of the date on w hich they are made, and w e assume no obligation to update or revise any forw ard-looking statements or other information contained herein, w hether as a result of new information, future events or otherw ise. You are cautioned not to put undue reliance on these forw ard-looking statements.
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures as defined by SEC rules. Please see our press release reporting our 2020 fourth quarter and annual f inancial results, as w ell as our Annual Report, for a reconciliation of the GAAP results to the adjusted non-GAAP figures. The non-GAAP data presented by Teva are the results used by Teva's management and board of directors to evaluate the operational performance of the company, to compare against the company's w ork plans and budgets, and ultimately to evaluate the performance of management. Teva provides such non-GAAP data to investors as supplemental data and not in substitution or replacement for GAAP measure because management believes such data provides useful information to investors. A reconciliation of forw ard-looking non-GAAP estimates to the corresponding GAAP measures is not being provided due to the unreasonable efforts required to prepare it.
Some amounts in this presentation may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Kåre SchultzPresident and Chief Executive Officer
Highlights
| 4 |
Financial Business
Met key components of 2020 financial guidance:
− Revenues of $16.7 billion
− Non-GAAP operating income of $4.4 billion
− Non-GAAP EBITDA of $4.9 billion
− Non-GAAP EPS of $2.57
− Free cash flow of $2.1 billion
− Successfully navigated COVID-19 pandemic with minimal impact on our supply chain, R&D programs and product launches
− AUSTEDO® rapid growth continues
− AJOVY® global sales bolstered by launch of auto-injector
− Achieved TRUXIMA® biosimilar market share of ~24% in the U.S.
− Launched first generic versions of HIV-1 treatments Truvada® andAtripla® tablets in the U.S.
− Launched generic version of NuvaRing® in the U.S. in January 2021
− Announced positive phase 3 results for Risperidone LAI for patients with schizophrenia in January 2021
− Launched Digihaler® portfolio - the first and only digital, breath-actuated inhalers with built-in sensors that track inhaler events and measure inspiratory flow
Revenue Development
| 5 |
$ millions
2,047 2,071 2,0512,373 2,082 2,047 2,017 2,300
1,264 1,183 1,1631,184
1,4021,001 1,116
1,237
521 582 565578 565
488 529
572317 342 314
332 307
335 316
3444,357
Q3-20
4,468
Q2-20Q1-19 Q1-20Q4-19Q2-19 Q3-19 Q4-20
4,149 4,177 4,0933,870 3,978
4,454
Other Activities
North America
International MarketsEurope
AUSTEDO® Continues to Grow
| 6 |
AUSTEDO® TRx Count Per Quarter
35,503
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
AUSTEDO® Revenues By Quarter ($ million) Highlights
Net global sales of $638 million in
2020, an increase of 65% vs. 2019
~36K prescriptions dispensed in Q4
2020
~11K patients
Source: IQVIA US NPA Audit Source: Company Information
17
30
44
62 69
74
96 105
136
122
161 168
185
®
| 7 |
AJOVY® Weekly Normalized TRx Count AJOVY® NBRx Share* Highlights
Source: IQVIA NPA TRx (weekly), normalized - wk ending 01/01/2020
30%
28%
28%
25%
21%
19%
15%
14%
14%
14%
13%
14%
11%
11%
12%
15%
19% 21
% 22%
23% 24
%24
%25
%24
%
1/19
2/19
3/19
4/19
5/19
6/19
7/19
8/19
9/19
10/1
911
/19
12/1
91/
202/
203/
204/
205/
206/
207/
208/
209/
2010
/20
11/2
012
/20
Source: IQVIA NPA MD (weekly) wk ending 01/01/2021
*monthly NBRx share estimated from weekly NBRx data
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
12/2
7/19
1/24
/20
2/21
/20
3/20
/20
4/17
/20
5/15
/20
6/12
/20
7/10
/20
8/7/
20
9/4/
20
10/2
/20
10/3
0/20
11/2
7/20
12/2
5/20
• Net global sales of $183 million in 2020:• U.S. - $134 million, an increase of
45% vs. 2019• Europe - $31 million
• U.S. normalized TRx share of ~20%; auto-injector accounts for 41% of TRx(65% of total NBRx)
• Launched in 19 European markets; 2nd
leading anti-CGRP brand in Europe
Source: Decision Resources, Fingertip Analytics 2.0
AJOVY® Sales Bolstered by Auto-Injector Launch
TRUXIMA Market Shares within rituximab IV, Q4 2020 Highlights
0
2
4
6
8
10
12
14
16
18
20
22
24
Mar-20 Sep-20Jun-20Dec-19 Dec-20
19.5%20.6%20.1%
6.4%Volu
me
Mar
ket
Shar
e in
%
6.0%
6.7%
9.3%
12.5%
15.6%14.4%
16.5%
22.2%24.0%
20.6% Reached 24% market share
by end of 2020
Remains only rituximab biosimilar indicated for rheumatoid arthritis (RA)
| 8 |
TRUXIMA® - Cornerstone of Teva’s U.S. Biosimilar Strategy
Source: IQVIA DDDMD
Teva Specialty & Biosimilar Product Pipeline
| 9 |
Digihaler®
(budesonide and formoterol fumarate
dihydrate)(EU)
TEV-45779
TEV-54242Oncology
TVB-009
TEV-54142
TV-44749Schizophrenia
TEV-53408 Gastrointestinal
TEV-56194
TEV-56191
TEV-56261
TECHNOLOGY PLATFORMS
Biosimilars Small Molecules
Novel Biologics
Digital Respiratory
Pre-clinical Phase 1 Phase 2 Phase 3 Pre Submission
TEV-56192Respiratory
Fasinumab3
Osteoarthritic Pain
Risperidone LAI Schizophrenia
Deutetrabenazine4
Dyskinesia in Cerebral Palsy
TEV-53275 Respiratory
TEV-48574 Respiratory
Fremanezumab2
Fibromyalgia
Teva specialty pipeline by development stage, excluding country / regional launches of products submitted or under review in new markets.*Visit https://w ww.tevausa.com/our-products/article-pages/Specialty-Medicines-List/ for full prescribing information for these products in the US.Pipeline is current as of February 20211) In partnership w ith Alvotech2) These uses are investigational. Fremanezumab is approved in the United States for another indication as AJOVY® (fremanezumab-vfrm) injection*3) In partnership w ith Regeneron4) These uses are investigational. Deutetrabenazine is approved in the United States for other indications as AUSTEDO® (deutetrabenazine) tablets*
QVAR® Digihaler®
(beclomethasonedipropionate HFA)
(US)
Fremanezumab2
Additional Indication
TEV-562811
TEV-562821
TEV-562831
TEV-562841
Fremanezumab2
Additional Indication
TV-48438Schizophrenia
Under Regulatory Review
Biosimilar to Humira®
(adalimumab)1
TEV-56248Respiratory
by development stage - February 2021
| 10 |
Take a total Cost of Ownership lens to drive procurement savings
Continue the focus and accelerate the ongoing network optimization
Ensure operational excellence and build capabilities across key sites
Design & digitizeend-to-end supply chain processes
Develop an agile, repeatable and reliable operating system. Leverage manufacturing operations best practices and empower sites leaders
Gross Margin Improvement Program focused on 5 key levers
80
73
6461
50
55
60
65
70
75
80
85
2017 2018 2019 2020
Footprint will continue to shrink - 11 additional sites announced to be divested/closed
Number of sites
Pharmaceutical Manufacturing Sites
| 11 |
27.8%
25.9%
24.5%
26.3%
26.8%
28.0%
24.0%
24.5%
25.0%
25.5%
26.0%
26.5%
27.0%
27.5%
28.0%
28.5%
2017 2018 2019 2020 2021 Guidance* 2023 Target
* Estimated margin based on 2021 guidance
Operating Margin ExpansionNon-GAAP operating margin %
| 12 |
$20.0
$22.0
$24.0
$26.0
$28.0
$30.0
$32.0
$34.0
$36.0
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
Net Debt Development $ billions
| 13 |
(1) Free cash flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash componentcollected for securitized trade receivables.
(2) Operating income margin = Non-GAAP operating income divided by net revenues. (3) All measures including operating income, EBITDA and earnings are presented on a non-GAAP basis.(4) Cash to earnings = free cash flow divided by non-GAAP net income attributable to ordinary shareholders.(5) Net debt/EBITDA = Net debt/non-GAAP EBITDA.
Long-Term Financial Targets
To be achieved by year-end 2023
Committed to utilizing cash flow to pay down debt; we do not plan to raise equity
28% >80% <3X
Operating income margin (2)(3) Cash-to-earnings(1)(3)(4) Net debt / EBITDA (3)(5)
| 14 |
CLIMATE ACTION &
RESILIENCE
• Reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 33% • Support efforts to limit global temperature increase to well below 2°C • Aligned with the 2015 Paris Climate Agreement
RESPONSIBLE USE OF
NATURAL RESOURCES
• Increase energy efficiency by 10% • Increase energy from renewable sources to 50%• Reduce total water withdrawal by 10%
EMISSIONS, EFFLUENTS AND WASTE
• Increase proportion of recycled and responsibly-sourced materials by 10%• Continue to minimize waste• Minimize antimicrobial discharges from our operations and supply chain
Teva’s 2030 Environmental Long Term Targets
| 15 |
EVP & Chief Financial Officer
Eli Kalif
Q4 2020 Summary
$ millions, except EPS Q4 2020 Q4 2019 Q4 2020 Q4 2019
GAAP Non-GAAP
Revenues 4,454 4,468 4,454 4,468
Operating income (loss) 406 148 1,140 1,061
Net income (loss) attributable to Teva 150 110 753 683
Earnings (loss) per share ($)*0.14
1,100 million shares
0.101,094 million
shares
0.681,100 million
shares
0.621,094 million
shares
| 17 | * Earnings per share based on diluted number of shares
Non-GAAP Adjustments
| 18 |
$ millions Q4 2020 Comments
Amortization 262 Quarterly run-rate
Impairment of assets, and accelerated depreciation 236 Mainly US product rights and IPR&D
Legal settlements 50 Mainly related to a fine imposed in connection with the 2005 Modafinil patent settlement
Equity compensation 40
Restructuring 38
IPR&D 34
Finance, divestment, contingent & other 106
Corresponding tax effect (162)
Total adjustments 603
Non-GAAP Summary
| 19 |
$ billions, except EPS Q4 2020 Q4 2019 Change FY 2020 FY 2019 Change
Revenues 4.5 4.5 - 16.7 16.9 (1%)
Gross profit 2.352.3%
2.350.6% 1.6%
8.752.4%
8.751.5% 0.9%
Operating income 1.125.6%
1.123.8% 1.9%
4.426.3%
4.124.5% 1.8%
EBITDA 1.3 1.2 6% 4.9 4.7 5%
Net income attributable to Teva 0.8 0.7 10% 2.8 2.6 8%
EPS ($)0.68
1,100 million shares
0.621,094 million
shares10%
2.571,099 million
shares
2.401,094 million
shares7%
Free cash flow* 0.5 1.0 (52%) 2.1 2.1 -
* Free cash f low includes cash f low generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables
| 20 |
1,187(36%)
2,206(65%)
1,200(35%)
2,126(64%)
Q4 2019 Q4 2020
3,406 3,313
-3%
COGSOPEX
4,46850.6%23.8%
4,45452.3%25.6%
RevenuesGP%OP%
$ millions 12,745
7,925(65%)
8,185(64%)
4,561(36%)
FY 2019
4,346(35%)
FY 2020
12,271
-4%
16,88751.5%24.5%
16,65952.4%26.3%
Spend Base
974
551582
506471
Q4 2019Act
Q3 2020Act
Q1 2020Act
Q2 2020Act
Q4 2020Act
Free Cash Flow$ millions
$ 2.1 bn
Cumulative 4 Quarters:
| 21 | * Free cash f low includes cash f low generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables
Cash-to-Earnings
• * Free Cash Flow / non-GAAP Net income| 22 |
$ millions
2,053 2,110
FY-19 FY-20
+57
Free Cash Flow
FY-19 FY-20
78% 75%
Cash-to-earnings*
2,6272,830
FY-20FY-19
+203
Non-GAAP Net Income
Long-range target: 80%
24.9 24.3 23.9 23.8 23.7
4.7 4.9 4.9 4.8 4.9
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Debt Reduction
| 23 |
$ billions
4.834.924.904.955.32
70%71%64%64%64%
Net Debt
EBITDA MAT
Net Debt / EBITDA MAT*Leverage
$2.1 billion cash generated, partially offset by $900 million negative FX impact
* Teva's Net Debt/EBITDA MAT covenant ratio limits are 6.0x for H1 2020 and 5.75x for H2 2020
| 24 |
$ billions, except EPS 2020Actual
November 2020 Outlook
February 2020 Outlook
Revenues 16.7 16.5 - 16.8 16.6 - 17.0
Operating Income 4.4 4.2 - 4.4 4.0 - 4.4
EBITDA 4.9 4.7 - 4.9 4.5 - 4.9
EPS ($) 2.571,099 million shares
2.40 - 2.551,098 million shares
2.30 - 2.551,098 million shares
Free Cash Flow 2.1 1.8 - 2.2 1.8 - 2.2
2020 Guidance Development
| 25 |• * 2020 actual results include ~$240 million in revenues from generic products in Japan divested on February 1, 2021, along w ith a manufacturing site• ** Free Cash Flow includes cash f low generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables
$ billions, except EPS 2021 Outlook 2020 Actual November 2020 Outlook
Revenues* 16.4 - 16.8 16.7 16.5 - 16.8COPAXONE ~$1,050 million $1,337 million ~$1,300 million
AUSTEDO ~$950 million $638 million ~$650 million
AJOVY ~$300 million $183 million ~$200 million
Operating Income 4.3 - 4.6 4.4 4.2 - 4.4
EBITDA 4.8 - 5.1 4.9 4.7 - 4.9
EPS ($) 2.50 - 2.701,105 million shares
2.571,099 million shares
2.40 - 2.551,098 million shares
Free Cash Flow** 2.0 - 2.3 2.1 1.8 - 2.2CAPEX 0.6 0.6 0.5Non-GAAP Tax Rate 17% - 18% 17% 17% - 18%
Foreign ExchangeVolatile swings in FX can negatively impact revenue
and income
2021 Non-GAAP Outlook
Q&A
Additional Information
FY 2020 Summary
$ millions, except EPS FY2020
FY2019
FY2020
FY2019
GAAP Non-GAAP
Revenues 16,659 16,887 16,659 16,887
Operating income (loss) (3,572) (443) 4,388 4,142
Net income (loss) attributable to Teva (3,990) (999) 2,830 2,627
Earnings (loss) per share ($)*(3.64)
1,095 million shares
(0.91)1,091 million
shares
2.571,099 million
shares
2.401,094 million
shares
| 28 | * Diluted earnings per share based on diluted number of shares
Quarterly GAAP Income Statement
| 29 |
$ millions, except EPS Q4 2020 Q4 2020 Margins Q4 2019 Q4 2019
Margins Change
Revenues 4,454 4,468 (0%)COGS 2,405 54.0% 2,510 56.2% (4%)Gross profit 2,048 46.0% 1,958 43.8% 5%R&D 293 6.6% 232 5.2% 26%S&M 683 15.3% 706 15.8% (3%)G&A 327 7.3% 318 7.1% 3%Legal settlements and loss contingencies 50 1.1% 7 0.2% n/aImpairments, restructuring and others 299 6.7% 593 13.3% (50%)Other income (10) (0.2%) (47) (1.1%) (79%)Operating income (loss) 406 9.1% 148 3.3% 174%Finance exp. 268 6.0% 186 4.2% 44%Tax (22) (15.6%) (119) 310.6% n/aMinority and share in profit (loss) 9 0.2% (29) (0.7%) n/aNet income (loss) attributable to Teva 150 3.4% 110 2.5% 37%
# of shares (diluted, millions) 1,100 1,094
Earnings (loss) per share ($) 0.14 0.10 36%
• * Represents tax rate
* *
FY 2020 GAAP Income Statement
| 30 |
$ millions, except EPS FY 2020 FY 2020Margins FY 2019 FY 2019
Margins Change
Revenues 16,659 16,887 (1%)COGS 8,933 53.6% 9,351 55.4% (4%)Gross profit 7,726 46.4% 7,537 44.6% 3%R&D 997 6.0% 1,010 6.0% (1%)S&M 2,498 15.0% 2,614 15.5% (4%)G&A 1,173 7.0% 1,192 7.1% (2%)Legal settlements and loss contingencies 60 0.4% 1,178 7.0% (95%)Impairments, restructuring and others 6,609 39.7% 2,062 12.2% 221%Other income (40) (0.2%) (76) (0.5%) (48%)Operating income (loss) (3,572) (21.4%) (443) (2.6%) n/aFinance exp. 834 5.0% 822 4.9% 1%Tax (168) 3.8% (278) 21.9% n/aMinority and share in profit (loss) 247 (1.5%) 12 0.1% n/aNet income (loss) attributable to Teva (3,990) (24.0%) (999) (5.9%) n/a
# of shares (diluted, millions) 1,095 1,091
Earnings (loss) per share ($) (3.64) (0.91) n/a
• * Represents tax rate
* *
| 31 |
$ millions Q4 2020 Q4 2019 Diff FX Effect Diff net FX
Revenues 4,454 4,468 (14) 35 (49)
Operating incomeGAAP 406 148 258 (30) 288
Operating income Non-GAAP 1,140 1,061 79 (24) 103
Q4 2020 Foreign Exchange Impact
Net Revenue and Profitability (Non-GAAP)
4,149 4,1774,093
4,468
4,357
3,870
3,978
4,454
51.8% 52.4% 51.4% 50.6% 53.1% 52.0% 52.4% 52.3%
24.6% 24.2% 25.7% 23.8% 28.5% 25.3% 25.8% 25.6%
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020Net Revenues Gross Margin Operating Margin
| 32 |
$ millions
Revenues by Activity and Geographical Area
| 33 | * Excluding ProAir authorized generic
$ millions Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-19 FY-20North America Segment 2,373 2,082 2,047 2,017 2,300 8,542 8,447
Generic products 1,137 952 923 928 1,206 3,963 4,010AJOVY® 25 29 34 35 36 93 134AUSTEDO® 136 122 161 168 185 412 637BENDEKA®/TREANDA® 125 105 103 105 102 496 415COPAXONE® 264 198 238 236 213 1,017 884ProAir®* 80 59 66 50 67 274 241QVAR® 67 45 51 42 40 250 179Anda 412 426 374 341 321 1,492 1,462Other 128 146 96 113 131 546 485
Europe Segment 1,184 1,402 1,001 1,116 1,237 4,795 4,757Generic products 871 1,032 737 824 920 3,470 3,513AJOVY® 2 4 5 8 13 3 31COPAXONE® 106 109 84 101 106 432 400Respiratory 86 106 80 77 90 354 353Other 120 151 95 106 107 536 459
International Markets Segment 578 565 488 529 572 2,246 2,154Generic products 489 449 426 429 488 1893 1792COPAXONE® 17 12 12 14 15 63 53Other 73 104 50 86 69 291 309
Other 332 307 335 316 344 1,304 1,302Total Teva 4,468 4,357 3,870 3,978 4,454 16,887 16,659
Profits and EPS (Non-GAAP)
| 34 |
654 653 637 683835
605 637753
1,019 1,011 1,051 1,061
1,244
979 1,025
1,140
0.60 0.60 0.58 0.62 0.76 0.55 0.58 0.68
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Net Income Operating Profit EPS
$ millions, EPS in $
Spend Base Trend (Non-GAAP)
| 35 |
$ millions Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
COGS 2,206 2,046 1,859 1,894 2,126
S&M 665 570 559 566 627
R&D 237 221 233 233 254
G&A 309 290 245 269 312
Other income (9) (13) (6) (8) (5)
Total 3,406 3,114 2,891 2,953 3,313
FY-2019 FY-2020
8,185 7,925
2,438 2,322
1,004 941
1,145 1,115
(27) (31)
12,745 12,271
Quarterly Non-GAAP Operating Income
| 36 |
52
International Markets
-5
1,061
Q4-19 North America
15
Europe
17
Other Activities
1,140
Q4-20
$ millions
Quarterly Non-GAAP Operating Income
| 37 |
258)24%(
686)65%(
312)30%(
573)59%(
17 (2%)156 (13%)
101 (10%)
1,061 33 (3%)
502)40%(
Q4-19
36 (3%)
550)44%(
Q1-20
66 (7%)
1,025
97 (10%)
244)25%(
Q2-20
28 (3%)125 (12%)
560)55%(
Q3-20
96 (8%)
273)24%(
738)65%(
Q4-20
1,244
979
1,140
Europe
Other Activities
North America
International Markets
Revenues: 4,468 4,357 3,870 3,978
Numbers in bracket presents a percentage of the total figure
4,454
$ millions
Quarterly EBITDA
| 38 |
$ millions
1,2041,375
1,108 1,1531,277
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
* EBITDA is based on non-GAAP operating income (which excludes amortization and certain other items, as well as depreciation expenses)
Q4 2020 EBITDA to Free Cash Flow
1,277
331471
303
(213)
Non-GAAP EBITDA
WC & OtherTax payments
(275)
Interest payments, net
(143)
(82)
Legal Settlements
(232)
Securitization* Operating cash flow
Securitization reclass
13(176)
Asset sales;Capex gross
Free cash flow
(806)(-63%)
* Q4 securitization cash flow net impact $71m (FY ~ -$8m)| 39 |
$ millions
Consolidated Balance Sheet
| 40 |
$ billions Dec 31, 2020 Dec 31, 2019 Diff
Cash and Cash Equivalents 2.2 2.0 0.2AR Trade 4.6 5.7 (1.1)Pre-paid Expenses and Other Current Assets 1.8 1.4 0.5Inventory 4.4 4.4 (0.0)Fixed Assets 6.3 6.4 (0.1)Intangible Assets 8.9 11.2 (2.3)Goodwill 20.6 24.8 (4.2)Other Long Term Assets 1.8 1.5 0.3Total Assets 50.6 57.5 (6.8)
AP Trade 1.8 1.7 0.1SR&A 4.8 6.2 (1.3)AP Other 3.4 3.5 (0.0)Total Debt (ST+LT) 25.9 26.9 (1.0)Other Long Term Liabilities 3.7 4.2 (0.5)Minority 1.0 1.1 (0.1)Teva Shareholders’ Equity 10.0 14.0 (3.9)Total Liabilities & Equity 50.6 57.5 (6.8)
Q4 2020 Debt Movements
| 41 |
$ billions
0.4
RCF* Repayment
23.725.6
Sep 30, 2020
-0.1
FX
25.9
Dec 31, 2020
-2.2
Cash balance Dec 31, 2020
Gross Debt Gross Debt Net Debt
* RCF – Revolving Credit Facility
FY 2020 Debt Movements
| 42 |
$ billions
0.9
26.9
Dec 31, 2019
-1.9
FXDebt Repayment
25.9
Dec 31, 2020
-2.2
Cash balance
23.7
Dec 31, 2020
Gross Debt Gross Debt Net Debt
2020 Score 2020 Sector Ranking Previous Score Previous Sector Ranking
65 Top 10% 63 Top 14%
36 Top 30% 33 Top 45%
A- Top 38% B Top 64%
C Bottom 18% Not scored Not scored
C Top 40% D+ N/A
3.4 Top 29% 3.9 Top 12%
B Bottom 22% B Bottom 22%
56 Top 23% 56 Top 17%
22 Top 22% 9 Top 17%
Teva 2020 ESG Performance
| 43 |