1

Presentation to Israeli Capital MarketPresentation to Israeli Capital MarketQ4Q4--09 and Full Year 2009 Results09 and Full Year 2009 ResultsShlomo Yanai, President & CEOEyal Desheh, Chief Financial OfficerFebruary 16, 2010

2Forward looking statementsForward looking statements

TODAY’S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING, AMONG OTHER THINGS, REGARDING OUR EXPECTED PROFITABLE GROWTH, REVENUES, NET INCOME, THE DRIVERS AND CONTRIBUTORS OF THIS GROWTH, STRATEGY AND COMPETITIVE ADVANTAGES, WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS ARE BASED ON MANAGEMENT'S CURRENT BELIEFS AND EXPECTATIONS AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE OUR FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER SIGNIFICANTLY FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE RISKS RELATING TO: OUR ABILITY TO SUCCESSFULLY DEVELOP AND COMMERCIALIZE ADDITIONAL PHARMACEUTICAL PRODUCTS, THE INTRODUCTION OF COMPETING GENERIC EQUIVALENTS, THE EXTENT TO WHICH WE MAY OBTAIN U.S. MARKET EXCLUSIVITY FOR CERTAIN OF OUR NEW GENERIC PRODUCTS AND REGULATORY CHANGES THAT MAY PREVENT US FROM UTILIZING EXCLUSIVITY PERIODS, POTENTIAL LIABILITY FOR SALES OF GENERIC PRODUCTS PRIOR TO A FINAL RESOLUTION OF OUTSTANDING PATENT LITIGATION, INCLUDING THAT RELATING TO THE GENERIC VERSIONS OF NEURONTIN®, LOTREL®, PROTONIX® AND ELOXATIN®, THE CURRENT ECONOMIC CONDITIONS, COMPETITION FROM BRAND-NAME COMPANIES THAT ARE UNDER INCREASED PRESSURE TO COUNTER GENERIC PRODUCTS, OR COMPETITORS THAT SEEK TO DELAY THE INTRODUCTION OF GENERIC PRODUCTS, THE EFFECTS OF COMPETITION ON OUR INNOVATIVE PRODUCTS, ESPECIALLY COPAXONE® SALES, INCLUDING POTENTIAL ORAL AND GENERIC COMPETITION FOR COPAXONE®, DEPENDENCE ON THE EFFECTIVENESS OF OUR PATENTS AND OTHER PROTECTIONS FOR INNOVATIVE PRODUCTS, THE IMPACT OF CONSOLIDATION OF OUR DISTRIBUTORS AND CUSTOMERS, THE IMPACT OF PHARMACEUTICAL INDUSTRY REGULATION AND PENDING LEGISLATION THAT COULD AFFECT THE PHARMACEUTICAL INDUSTRY, OUR ABILITY TO ACHIEVE EXPECTED RESULTS THOUGH OUR INNOVATIVE R&D EFFORTS, THE DIFFICULTY OF PREDICTING U.S. FOOD AND DRUG ADMINISTRATION, EUROPEAN MEDICINES AGENCY AND OTHER REGULATORY AUTHORITY APPROVALS, THE UNCERTAINTY SURROUNDING THE LEGISLATIVE AND REGULATORY PATHWAY FOR THE REGISTRATION AND APPROVAL OF BIOTECHNOLOGY-BASED PRODUCTS, THE REGULATORY ENVIRONMENT AND CHANGES IN THE HEALTH POLICIES AND STRUCTURES OF VARIOUS COUNTRIES, SUPPLY INTERRUPTIONS OR DELAYS THAT COULD RESULT FROM THE COMPLEX MANUFACTURING OF OUR PRODUCTS AND OUR GLOBAL SUPPLY CHAIN, OUR ABILITY TO SUCCESSFULLY IDENTIFY, CONSUMMATE AND INTEGRATE ACQUISITIONS, THE POTENTIAL EXPOSURE TO PRODUCT LIABILITY CLAIMS TO THE EXTENT NOT COVERED BY INSURANCE, OUR EXPOSURE TO FLUCTUATIONS IN CURRENCY, EXCHANGE AND INTEREST RATES, SIGNIFICANT OPERATIONS WORLDWIDE THAT MAY BE ADVERSELY AFFECTED BY TERRORISM, POLITICAL OR ECONOMICAL INSTABILITY OR MAJOR HOSTILITIES, OUR ABILITY TO ENTER INTO PATENT LITIGATION SETTLEMENTS AND THE INTENSIFIED SCRUTINY BY THE U.S. GOVERNMENT, THE TERMINATION OR EXPIRATION OF GOVERNMENTAL PROGRAMS AND TAX BENEFITS, IMPAIRMENT OF INTANGIBLE ASSETS AND GOODWILL, ENVIRONMENTAL RISKS, AND OTHER FACTORS THAT ARE DISCUSSED IN THIS REPORT AND IN OUR OTHER FILINGS WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ("SEC").

3NonNon--GAAP financial measuresGAAP financial measures

TODAY’S PRESENTATIONS REFLECT NON-GAAP FINANCIAL MEASURES, INCLUDING OPERATING PROFIT, NET INCOME, EPS, OPERATING MARGIN, AND NET INCOME MARGIN, AND SHOULD NOT BE CONSIDERED REPLACEMENTS FOR GAAP RESULTS. WE PROVIDE SUCH NON-GAAP DATA BECAUSE MANAGEMENT BELIEVES THAT SUCH DATA PROVIDE USEFUL INFORMATION TO INVESTORS. HOWEVER, INVESTORS ARE CAUTIONED THAT, UNLIKE FINANCIAL MEASURES PREPARED IN ACCORDANCE WITH GAAP, NON-GAAP MEASURES MAY NOT BE COMPARABLE WITH THE CALCULATION OF SIMILAR MEASURES FOR OTHER COMPANIES. THE COMPARABLE GAAP MEASURES FOR 2008 AND RECONCILIATION BETWEEN OUR GAAP AND NON-GAAP RESULTS ARE AVAILABLE ON OUR WEBSITE AT WWW.TEVAPHARM.COM.

THE NON-GAAP MEASURES FOR YEARS 2009 – 2015 ARE FORWARD-LOOKING STATEMENTS FOR WHICH THE CORRESPONDING GAAP MEASURES ARE NOT AVAILABLE AND CANNOT BE PROVIDED WITHOUT UNDUE EFFORT BECAUSE WE ARE UNABLE TO ACCURATELY FORECAST INFORMATION RELATING TO NON-GAAP ADJUSTMENTS. WE BELIEVE THAT THE CORRESPONDING GAAP MEASURE IS NOT LIKELY TO BE SIGNIFICANT TO AN UNDERSTANDING OF OUR BUSINESS DUE TO THE VARIABILITY AND UNPREDICTABILITY OF OUR NON-GAAP ADJUSTMENTS. SUCH GAAP MEASURES MAY BE MATERIALLY DIFFERENT FROM SUCH FORWARD-LOOKING NON-GAAP MEASURES.

EXCEPT WHERE NOTED, THE 2009 DATA IN TODAY’S PRESENTATIONS ARE FIRST CALL CONSENSUS ESTIMATES OR OTHERWISE BASED ON ANALYST MODELS.

4

2009 HIGHLIGHTS

STRATEGIC UPDATE – HIGHLIGHTS

Q4 2009 AND FULL YEAR 2009 FINANCIAL RESULTS

5Q4 2009 Q4 2009 –– strong resultsstrong results

* Net income, operating income and EPS are non GAAP results

3,802Sales$m

Net income$m

EPS$

2,848

847662

0.940.80

Q4/08* Q4/09* Change

+33%

+28%

+16%

Operating income$m

1,049746 +41%

62009 2009 –– strong resultsstrong results

* Net income, operating income and EPS are non GAAP results

13,899Sales$m

Net income$m

EPS$

11,085

3,0292,493

3.373.03

2008* 2009* Change

+25%

+22%

+11%

Operating income$m

3,8532,856 +35%

72009 2009 –– an extraordinary yearan extraordinary year

Record FinancialResults

Record salesRecord profit levels: gross, operating and net

2008: an extraordinary year2008: an extraordinary yearBalance Business Model

Record sales in all geographiesRecord sales in all business lines

Enhancing Branded Franchises

Copaxone® – solidify position as #1 MS treatment Azilect® – growing market share in Europe and U.S. Respiratory – ProAir™ #1; Qvar® - #2 in U.S.

Balance Sheet

Record cash flow of $3.4Reduce debt by $2.8 billionFinancial leverage below pre-Barr level

8Enhancing leadership in the U.S. Enhancing leadership in the U.S. PharmaPharma industry (brand and generic)industry (brand and generic)

NRxs(000s)

New Rx’s Total Rx’sTRxs(000s)

%Share

% Share

1 Teva 339,386 17.0

2 Mylan 143,651 7.2

3 Watson 133,821 6.7

4 Pfizer 123,112 6.2

5 Novartis 122,033 6.1

6 Mallinckrodt 76,368 3.8

7 Qualitest 63,687 3.2

8 Amneal 49,623 2.5

9 Apotex 44,166 2.2

10 Actavis 39,982 2.0

1 Teva 629,199 16.3

2 Mylan 342,980 8.9

3 Pfizer 264,467 6.9

4 Novartis 241,866 6.3

5 Watson 219,542 5.7

6 Qualitest 99,431 2.6

7 Apotex 97,782 2.5

8 AstraZeneca 93,177 2.4

9 Lupin 92,735 2.4

10 Mallinckrodt 90,792 2.4

*12 months ended December 2009

9

2009 HIGHLIGHTS

STRATEGIC UPDATE – HIGHLIGHTS

Q4 2009 AND FULL YEAR 2009 FINANCIAL RESULTS

10

Revenues

Net income

Net profitability

Teva strategy update: Targets for 2015Teva strategy update: Targets for 2015

$31 bn

$6.8 bn

22%

11Maintaining TevaMaintaining Teva’’s mix of generics & brandeds mix of generics & branded

2009E 2015

70%

30%

$13.9bn

$31bn

~30%

~70%

Generics

Branded

12Growth through market shareGrowth through market share

North America

Europe

International

$15bn

$9bn

$7bn

9.5%

18.6%

23.2%

2015 salestargets

$31bnTotal

2009-2015CAGR

14.3%

13Two major topicsTwo major topics

GENERICS GROWTH

COPAXONE & TEVA’S BRANDED BUSINESS

142 fundamental questions/topics

GENERICS GROWTH

COPAXONE & TEVA’S BRANDED BUSINESS

15World population growing and agingWorld population growing and aging

World population, bn

• World population is growing

• Life expectancy is increasing

• People are consuming more drugs

40+

<40

6.5

9.1

16

Source: NCHC; OECD, US Department of Commerce

Healthcare costs growing faster than GDPHealthcare costs growing faster than GDP

U.S. example

7.0%8.8%

11.9%15.2%

17.0%

1970 1980 1990 2003 2008

3.4%

5.8%

GDP Healthcare

Healthcare spend as % of GDP Average annual growth1970-2008

17

Source: Exane BNP Paribas, IMS, Espicom, Teva estimates

Growing demand for genericsGrowing demand for generics

North America

Europe

International

$80bn

$135-150bn

2008

DevelopedCountries

EmergingGenericsMarkets

New products:patent expirations

2015

Market outlook for global generic sales

Current portfolio

Future Portfolio

$150bnin brand

value

18

* Not including vaccines and blood products ♦Source: IMS, annual reports, Teva analysis

14

39

23

76

2008 worldwide sales of biologics, $bn

Biosimilars: the futureBiosimilars: the future

Patentsexpired

before 2010

Patentsexpiring

2010-2015

Patentsexpiring

2016-2020

Biosimilaropportunity -2008 brand

value

Teva’s Bio infrastructureSicor, IBR&D,

CoGenesys

Strategic AlliancesLonza

Biosimilaropportunity -

2015 estimated brand value

115

19Consolidation continues and intensifiesConsolidation continues and intensifies

20

GROWTH GROWTH GROWTH GROWTH

Increasing opportunities in emerging

generics markets

People living longer and consumingmore drugs

Healthcare reforms and cost saving initiatives

$150bn of brands going

off-patentin the next

5 years

Is there still room to grow in generics? Is there still room to grow in generics? YES!YES!

$135-150 bn in 2015

212 Fundamental questions/topics

GENERICS GROWTH

COPAXONE & TEVA’S BRANDED BUSINESS

22Teva Branded Teva Branded –– multifaceted approach & multifaceted approach & expertiseexpertise

23Teva Branded Teva Branded –– multifaceted approach & multifaceted approach & expertiseexpertise

24Branded products and growth opportunitiesBranded products and growth opportunities

Azilect®Parkinson’s

Copaxone®

Multiple Sclerosis

TevaGrastim®

Hematology

TEV-TROPIN®

Growth Hormone Deficiency

Plan B® One-StepEmergency Contraception

ParaGard®

Intrauterine Contraception

Seasonique® / LoSeasoniqueTM

Contraception

Laquinimod – Oral Multiple Sclerosis (Phase III)

Debrase – Burns(Phase III)

StemEx® – Hemato-oncological(Phase III)

Neugranin – Hematology(Phase II)

DR-103 –Contraception (Phase III)

Oxybutynin Vaginal Ring –Overactive Bladder (Phase III)

Laquinimod –Crohn's disease (Phase II)

Laquinimod – Lupus(Phase I)

Talampanel – ALS(Phase II)

Pagoclone – Stuttering (Phase II)

Talampanel – Glioblastoma(Phase II)

CT-011 – Hemato-Oncological(Phase II)

CT-011 – Solid Tumor Oncology (Phase II)

ProAirTM Inhaled short acting beta-mimetic

QVAR®

Inhaled Steroid

Easi-Breathe productsAsthma & COPD

DiaPep-277 – Type I Diabetes (Phase III)

TV-1390 – Multiple Sclerosis(Phase I)

BDP HFA Nasal – Respiratory (Phase III)

Progesterone Vaginal Ring -Infertility (Phase III)

TV-1101 (OGX-011)Solid Tumors (Phase III)

EnjuviaTM

Hormone Therapy

DR-1021 –Contraception (Phase III)

Marketed End phase III 2009-2012 End phase III 2012-2015

Innovative

Respiratory

Women’s health

Biologics

2 Respiratory projects (undisclosed)

2 MAbs (undisclosed)

2 Respiratory projects (undisclosed)

25Balance between highBalance between high--growth generics & growth generics & higherhigher--margin branded businessmargin branded business

~30%branded

~70%generic

HighGROWTH

HigherMARGINS

Diversity across: BUSINESS UNITS, PRODUCTS, GEOGRAPHIES

26Teva 2010Teva 2010--2015: Value creation2015: Value creation

Growth High profitability

Sustainable, balanced

business model

FinancialStrength

27

2009 HIGHLIGHTS

STRATEGIC UPDATE – HIGHLIGHTS

Q4 2009 AND FULL YEAR 2009 FINANCIAL RESULTS

28Q4 2009 Q4 2009 –– strong resultsstrong results

* Net income, operating income and EPS are non GAAP results

3,802Sales$m

Net income$m

EPS$

2,848

847662

0.940.80

Q4/08* Q4/09* Change

+33%

+28%

+18%

Operating income$m

1,049746 +41%

Cash flow from operations$m

957969 -1%

29

All figures in millions $, except EPS

Q4 Q4 –– three year trendthree year trend

Sales Gross profit Operatingprofit

Net income EPS+33% +36% +41% +28% +18%

2,5762,848

2007 2008 2009

1,387

1,634

2007 2008 2009

706746

2007 2008 2009

594

662

847

2007 2008 2009

0.73

0.8

0.94

2007 2008 2009

3,802

2,2281,049

* Gross profit, operating profit, net income and EPS are non GAAP results

302009 2009 –– strong resultsstrong results

* Net income, operating income and EPS are non GAAP results

13,899Sales$m

Net income$m

EPS$

11,085

3,0292,493

3.373.03

2008* 2009* Change

+25%

+22%

+11%

Operating income$m

3,8532,856 +35%

Cash flow from operations$m

3,3733,231 +4%

31Excellent marginsExcellent margins

* Operating income, net income, gross margin, operating market and net margin are non GAAP results

13,899Sales$m

Net income$m

Gross margin%

11,085

3,0292,493

58.455.3

2008* 2009* Change

+25%

+22%

Operating income$m

3,8532,856 +35%

Operating margin%

27.725.8

Net margin%

21.822.1

32Continuous growth track recordContinuous growth track record

5,4286,413

8,585 

2,645

2,976

3,271 

1,335

1,696

2,043 

2007 2008 2009

International

Europe

North America

Revenues, $ million

9,408

11,085

13,899

+23.7%

+11.2%

+25.7%

CAGR

+21.5%

33Q4 2009 – balanced business model

74% $2.8bn

26% $1.0bn

61% $2.3bn

24% $0.9bn

15% $0.6bnBranded

GenericNorth America

Europe

International

By business line By geography

$3.8bn $3.8bn

342009 – balanced business model

Branded

GenericNorth America

Europe

International

By business line By geography

$13.9bn $13.9bn

35Q4 2009 Q4 2009 –– exchange rate effectexchange rate effect

Total sales 2,848 +983,802 +33% +30%

North America 1,727 +152,324 +35% +34%

Q4 2008

FX effect

Q42009 Growth Real

growth

Europe 710 +75925 +30% +20%

International 411 +8553 +35% +33%

Operating profit 746 +11,049 +41% +40%

$ million

362009 2009 –– exchange rate effectexchange rate effect

Total sales 11,085 -57213,899 +25% +31%

North America 6,413 -248,585 +34% +34%

2008 FX effect2009 Growth Real

growth

Europe 2,976 -3523,271 +10% +22%

International 1,696 -1962,043 +20% +32%

Operating profit 2,856 -373,853 +35% +36%

$ million

37Quarterly cash flowQuarterly cash flow

700

470376

704 637

90

127134

126141

179

136148

195179

Q4 2008 Q1 2009

Net asset purchase

Dividends distributed

Free cash flow

Q2 2009 Q3 2009 Q4 2009

969

733658

Cash from operations1,025

957

$ million

38Annual cash flowAnnual cash flow

1,013

2,223 2187299

388 528

501

620 658

2007 2008

Net asset purchase

Dividends distributed

Free cash flow

2009

1,813Cash from operations

3,231 3,373

$ million

39Consolidated balance sheetConsolidated balance sheet

31 December, FY, $bn

Cash & marketable securities

Inventories, A/R & other assets

Long-term assets

Intangible assets

Goodwill

Total assets

2.0

9.5

4.5

4.6

12.3

32.9

2.5

9.9

4.7

4.0

12.7

33.8

ST & LT financial debt

SR&A, A/P & other accruals

Long-term liabilities

Total equity

Total liabilities & equity

8.4

5.6

2.5

16.4

32.9

5.6

6.3

2.6

19.3

33.8

2008 2009 2008 2009ASSETS LIABILITIES

40Improved financial leverageImproved financial leverage

16.4  16.1  17.8  19.3  19.2 

8.4  8.4  6.7 5.8  5.6 

34% 23%Leverage 23%

Equity

Debt

Dec08

Mar09

Jun09

Sep09

Dec09

34% 27%

24.8 24.5 24.5 25.1 24.8

$ bn

41TevaTeva’’ss dividend historydividend history

$ million NIS / share

75 73 7995 106 97 90

127 134 126141

173

0.7

0.6

0.4

20

40

60

80

100

120

140

160

180

200

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-090.15

0.25

0.35

0.45

0.55

0.65

0.75

Dividends ($M) NIS Per Share

0.45

17% increase from Q3’0955% increase from Q3’08

42