Supply Chain Shifting from an expense source to

Supply Chain Shifting from an expense source to an income resource Sapir Avinoam Managing Director, SLE January 2009

Teva IMAT - Organizational Structure (Israel, Mediterranean, Africa & Turkey) VP IMAT Judith Vardi HR Einav Barkani Medical Devices Danieli Medical Israel Yossi Ofek IT Yuval Shamir Pharma Iftach Seri Medical Affairs Roni Shiloh Supply Chain Management Avinoam Sapir Finance & Economics Ellit Mann-Bitton Commercial Affairs Orit Hadad MAT Danieli

A History of Leadership 4 SLE was established in 1901 by H. Salomon, M. Levin & Y. Elstein. H. Salomon M. Levin Y. Elstein SLE was a pioneer in the Israeli pharmaceutical market - a position it has maintained through over 100 years of dynamic growth. Today, SLE is a fully owned subsidiary of TEVA group - Israel's largest pharmaceuticals company, and one of the leading pharmaceutical companies in the world.

Multinational & Local Distribution Partners 4 SLE's strategic distribution partners include many of the world's top pharmaceutical companies as well as leading local manufacturers:

Uncompromised Data Security We are committed to a rigorous and uncompromised approach to data security. 4 SLE's commitment to the protection of its distribution partner's information is absolute 4 SLE uses the most advanced & reliable data security systems 4 SLE considers data security to be a dominate factor of its professionalism, ethics and reputation 4 SLE welcomes all Distribution Partners to perform information security audits

A Wide Range of Services 4 SLE offers a comprehensive supply-chain-management solution for pharmaceuticals & healthcare products distributors: 4 Import services (including labeling & inserting services) 4 Storage & warehousing 4 Inventory management & control 4 Customer service & telemarketing 4 Physical distribution 4 Logistics of Clinical Trials 4 GSL solution 4 Cold Chain 4 Sales & marketing services for the Palestinian Authority

A Wide Range of Products & Categories 4 SLE manages over 6, 000 products in various product-categories: 4 4 4 4 Pharmaceuticals (Rx & OTC) Vitamins, Minerals & Food Supplements Baby products Diagnostic Products Medical Equipment Pharmaceutical Cosmetics Other Healthcare Products

Over 4, 100 Loyal Customers 4 SLE supplies reliable services for over 4, 100 customers of various types: 4 Private Pharmacies and Drugstores (750) 4 Nursing Homes (350) 4 Sick Funds (140) 4 Institutional Customers & Hospitals (185) 4 Home Care Patients (C. A. P. D) (400) 4 VMS Customers (450) 4 Baby Shops (170) 4 4 Palestinian Authority Wholesalers (11) 4 4 Optic Stores (1400) Diagnostic Labs (250) Other (60)

Over 4, 100 Satisfied Customers A comprehensive customer satisfaction survey was performed by “MIDGAM Research & Consulting Ltd. ”. The survey was conducted anonymously among randomly-selected pharmacists - country wide. Leading Company in the business Company Ranked as 1 st SLE 54% Novolog 31% Chemipal 8% Agis 8%

Advanced IT Support (1) SLE applies the most advanced IT tools. 3 levels of information: I. Comprehensive & Flexible Database Macro overview with drill-down capability to specific products, batches, expiration dates, etc. II. Integration & Data Mining technologies (EIS & DSS) – Advanced Decision Support Systems with extensive analysis capabilities III. Geographic Information System (GIS)

Advanced IT Support (2) SLE's IT systems are designed to support all the relevant levels in our distribution partners' organizations. The systems allow distribution partners to access all the information they need and only the information they need: 4 Logistics 4 Sales 4 Marketing 4 Accounting 4 Management

SLE 2010

Rational Gathering all of Teva’s logistic activities in Israel under one roof Supporting Teva’s future growth (20 years scope) Utilizing SLE’s SCM expertise for the benefit of all Teva group Economics of scale thus reducing total costs Strengthening SLE’s leadership in the Israeli distribution market

Operation Parameters (planned) • Territory 35, 500 square meters : • Automatic Warehouse height : 42 meters • Storage capacity 76, 000 pallets : • Potential for expansion : • Pallets movements (daily) up to 120, 000 pallets : 3, 000 in & outbound • Operation in 3 daily shifts, 6 days a week

צ העמדה כללית באתר שוהם כב יש 6 נסטלה - אסם UMI

SLE's Credo "We are committed to provide a superior range of service and solutions to support our customer & distribution partners in achieving their objectives. ” Thank you.