January 2009January 2009

Supply ChainSupply ChainShifting from an expense source to an income resource

Sapir AvinoamSapir AvinoamManaging Director, SLE

Teva IMATTeva IMAT(Israel, Mediterranean, Africa & Turkey)

VP IMATJudith Vardi

CommercialAffairs

Orit Hadad

MedicalDevices

Dan Danieli

MedicalIsrael

Yossi Ofek

PharmaIftach Seri

Supply ChainManagementAvinoam Sapir

HREinav Barkani

ITYuval Shamir

MedicalAffairs

Roni Shiloh

Finance &Economics

Ellit Mann-Bitton

MATDan Danieli

- -Organizational StructureOrganizational Structure

SLE wasSLE was established inestablished in 19011901 by by H. Salomon, M. Levin & Y. Elstein.H. Salomon, M. Levin & Y. Elstein.

SLE wasSLE was established inestablished in 19011901 by by H. Salomon, M. Levin & Y. Elstein.H. Salomon, M. Levin & Y. Elstein.

A History of LeadershipA History of LeadershipA History of LeadershipA History of Leadership

Today, SLE is a fully owned Today, SLE is a fully owned subsidiary of TEVA groupsubsidiary of TEVA group - - Israel's largest pharmaceuticals Israel's largest pharmaceuticals company, and one of the leading company, and one of the leading pharmaceutical companies in the pharmaceutical companies in the world.world.

Today, SLE is a fully owned Today, SLE is a fully owned subsidiary of TEVA groupsubsidiary of TEVA group - - Israel's largest pharmaceuticals Israel's largest pharmaceuticals company, and one of the leading company, and one of the leading pharmaceutical companies in the pharmaceutical companies in the world.world.

H. SalomonH. SalomonH. SalomonH. Salomon

M. LevinM. LevinM. LevinM. Levin

Y. ElsteinY. ElsteinY. ElsteinY. Elstein

SLE was a pioneer in the Israeli SLE was a pioneer in the Israeli pharmaceutical market - a pharmaceutical market - a position it has maintained position it has maintained through through over 100 years of over 100 years of dynamic growthdynamic growth..

SLE was a pioneer in the Israeli SLE was a pioneer in the Israeli pharmaceutical market - a pharmaceutical market - a position it has maintained position it has maintained through through over 100 years of over 100 years of dynamic growthdynamic growth..

SLE's strategic distribution partners include many of SLE's strategic distribution partners include many of the world's top pharmaceutical companies as well as the world's top pharmaceutical companies as well as leading local manufacturers: leading local manufacturers:

SLE's strategic distribution partners include many of SLE's strategic distribution partners include many of the world's top pharmaceutical companies as well as the world's top pharmaceutical companies as well as leading local manufacturers: leading local manufacturers:

Multinational & Local Distribution PartnersMultinational & Local Distribution PartnersMultinational & Local Distribution PartnersMultinational & Local Distribution Partners

VMSPharmaceutical Market

Uncompromised Data SecurityUncompromised Data SecurityUncompromised Data SecurityUncompromised Data Security

SLE's commitment to the protection of its distribution SLE's commitment to the protection of its distribution partner's information is absolutepartner's information is absolute

SLE uses the most advanced & reliable data security SLE uses the most advanced & reliable data security systems systems

SLE considers data security to be a dominate factor of SLE considers data security to be a dominate factor of its professionalism, ethics and reputationits professionalism, ethics and reputation

SLE welcomes all Distribution Partners to perform SLE welcomes all Distribution Partners to perform information security auditsinformation security audits

SLE's commitment to the protection of its distribution SLE's commitment to the protection of its distribution partner's information is absolutepartner's information is absolute

SLE uses the most advanced & reliable data security SLE uses the most advanced & reliable data security systems systems

SLE considers data security to be a dominate factor of SLE considers data security to be a dominate factor of its professionalism, ethics and reputationits professionalism, ethics and reputation

SLE welcomes all Distribution Partners to perform SLE welcomes all Distribution Partners to perform information security auditsinformation security audits

We are committed to a rigorous and uncompromised We are committed to a rigorous and uncompromised approach to data security.approach to data security.We are committed to a rigorous and uncompromised We are committed to a rigorous and uncompromised approach to data security.approach to data security.

SLE offersSLE offers a comprehensive supply a comprehensive supply--chainchain--management management solution solution for pharmaceuticals & healthcare products for pharmaceuticals & healthcare products distributors:distributors:

SLE offersSLE offers a comprehensive supply a comprehensive supply--chainchain--management management solution solution for pharmaceuticals & healthcare products for pharmaceuticals & healthcare products distributors:distributors:

A Wide Range of ServicesA Wide Range of ServicesA Wide Range of ServicesA Wide Range of Services

Import services (including labeling & inserting services)Import services (including labeling & inserting services) Storage & warehousingStorage & warehousing Inventory management & controlInventory management & control Customer service & telemarketingCustomer service & telemarketing Physical distributionPhysical distribution Logistics of Clinical Trials Logistics of Clinical Trials GSL solutionGSL solution Cold ChainCold Chain Sales & marketing services for the Palestinian AuthoritySales & marketing services for the Palestinian Authority

Pharmaceuticals (Rx & OTC)Pharmaceuticals (Rx & OTC) Vitamins, Minerals & Food Vitamins, Minerals & Food

Supplements Supplements Baby productsBaby products Diagnostic Products Diagnostic Products Medical EquipmentMedical Equipment Pharmaceutical CosmeticsPharmaceutical Cosmetics Other Healthcare ProductsOther Healthcare Products

Pharmaceuticals (Rx & OTC)Pharmaceuticals (Rx & OTC) Vitamins, Minerals & Food Vitamins, Minerals & Food

Supplements Supplements Baby productsBaby products Diagnostic Products Diagnostic Products Medical EquipmentMedical Equipment Pharmaceutical CosmeticsPharmaceutical Cosmetics Other Healthcare ProductsOther Healthcare Products

SLE manages over SLE manages over 6,000 products6,000 products in in various product-various product-categoriescategories::

SLE manages over SLE manages over 6,000 products6,000 products in in various product-various product-categoriescategories::

A Wide Range of Products & CategoriesA Wide Range of Products & CategoriesA Wide Range of Products & CategoriesA Wide Range of Products & Categories

Private Pharmacies and DrugstoresPrivate Pharmacies and Drugstores (750)(750) Nursing HomesNursing Homes (350)(350) Sick FundsSick Funds (140) (140) Institutional Customers & HospitalsInstitutional Customers & Hospitals (185)(185) Home Care PatientsHome Care Patients (C.A.P.D) (C.A.P.D) (400)(400) VMS CustomersVMS Customers (450)(450) Baby Shops Baby Shops (170)(170) Palestinian Authority WholesalersPalestinian Authority Wholesalers (11)(11) Diagnostic LabsDiagnostic Labs (250)(250) Optic Stores Optic Stores (1400)(1400) OtherOther (60)(60)

Private Pharmacies and DrugstoresPrivate Pharmacies and Drugstores (750)(750) Nursing HomesNursing Homes (350)(350) Sick FundsSick Funds (140) (140) Institutional Customers & HospitalsInstitutional Customers & Hospitals (185)(185) Home Care PatientsHome Care Patients (C.A.P.D) (C.A.P.D) (400)(400) VMS CustomersVMS Customers (450)(450) Baby Shops Baby Shops (170)(170) Palestinian Authority WholesalersPalestinian Authority Wholesalers (11)(11) Diagnostic LabsDiagnostic Labs (250)(250) Optic Stores Optic Stores (1400)(1400) OtherOther (60)(60)

SLE supplies reliable services for over 4,100 customers of SLE supplies reliable services for over 4,100 customers of various types:various types:

SLE supplies reliable services for over 4,100 customers of SLE supplies reliable services for over 4,100 customers of various types:various types:

Over 4,100 Loyal CustomersOver 4,100 Loyal CustomersOver 4,100 Loyal CustomersOver 4,100 Loyal Customers

A comprehensive customer satisfaction survey was performed A comprehensive customer satisfaction survey was performed by “by “MIDGAM Research & Consulting Ltd.MIDGAM Research & Consulting Ltd.”. ”. The survey was conducted anonymously among randomly-The survey was conducted anonymously among randomly-selected pharmacists - country wide. selected pharmacists - country wide.

A comprehensive customer satisfaction survey was performed A comprehensive customer satisfaction survey was performed by “by “MIDGAM Research & Consulting Ltd.MIDGAM Research & Consulting Ltd.”. ”. The survey was conducted anonymously among randomly-The survey was conducted anonymously among randomly-selected pharmacists - country wide. selected pharmacists - country wide.

AgisAgis 8%8%

ChemipalChemipal 8%8%

NovologNovolog 31%31%

SLESLE 54%54%

Ranked as 1Ranked as 1stst CompanyCompany

Over 4,100Over 4,100Over 4,100Over 4,100Satisfied CustomersSatisfied Customers

Leading Leading Company in the Company in the

businessbusiness

Leading Leading Company in the Company in the

businessbusiness

Advanced IT SupportAdvanced IT Support (1)(1)Advanced IT SupportAdvanced IT Support (1)(1)

SLE applies the most advanced IT toolsSLE applies the most advanced IT tools..SLE applies the most advanced IT toolsSLE applies the most advanced IT tools..

I.I. Comprehensive & Flexible Database -Comprehensive & Flexible Database - Macro overview with drill-down capability to specific Macro overview with drill-down capability to specific products, batches, expiration dates, etc. products, batches, expiration dates, etc.

I.I. Comprehensive & Flexible Database -Comprehensive & Flexible Database - Macro overview with drill-down capability to specific Macro overview with drill-down capability to specific products, batches, expiration dates, etc. products, batches, expiration dates, etc.

3 levels of information:3 levels of information:3 levels of information:3 levels of information:

II.II. IntegrationIntegration && Data MiningData Mining technologies (EIS & DSS) – technologies (EIS & DSS) –Advanced Decision Support Systems with extensive Advanced Decision Support Systems with extensive analysis capabilities analysis capabilities

II.II. IntegrationIntegration && Data MiningData Mining technologies (EIS & DSS) – technologies (EIS & DSS) –Advanced Decision Support Systems with extensive Advanced Decision Support Systems with extensive analysis capabilities analysis capabilities

III.III. Geographic Information SystemGeographic Information System (GIS) (GIS)III.III. Geographic Information SystemGeographic Information System (GIS) (GIS)

Advanced IT SupportAdvanced IT Support (2)(2)Advanced IT SupportAdvanced IT Support (2)(2)

SLE's IT systems areSLE's IT systems are designed to support all the relevant designed to support all the relevant levelslevels in our distribution partners' organizations. in our distribution partners' organizations.The systems allow distribution partners to access The systems allow distribution partners to access allall the the information they need and information they need and onlyonly the information they need: the information they need:

SLE's IT systems areSLE's IT systems are designed to support all the relevant designed to support all the relevant levelslevels in our distribution partners' organizations. in our distribution partners' organizations.The systems allow distribution partners to access The systems allow distribution partners to access allall the the information they need and information they need and onlyonly the information they need: the information they need:

LogisticsLogistics

SalesSales

MarketingMarketing

AccountingAccounting

Management Management

LogisticsLogistics

SalesSales

MarketingMarketing

AccountingAccounting

Management Management

SLE 2010

RationalRational

Gathering all of Teva’s logistic activities in Israel under one Gathering all of Teva’s logistic activities in Israel under one roofroof

Supporting Teva’s future growth (20 years scope)Supporting Teva’s future growth (20 years scope)

Utilizing SLE’s SCM expertise for the benefit of all Teva groupUtilizing SLE’s SCM expertise for the benefit of all Teva group

Economics of scale thus reducing total costsEconomics of scale thus reducing total costs

Strengthening SLE’s leadership in the Israeli distribution Strengthening SLE’s leadership in the Israeli distribution marketmarket

Operation Parameters (planned)

• TerritoryTerritory :: 35,500 square meters

• Automatic Warehouse heightAutomatic Warehouse height :: 42 meters

• Storage capacityStorage capacity :: 76,000 pallets

• Potential for expansionPotential for expansion :: up to 120,000

pallets

• Pallets movements (daily)Pallets movements (daily) :: 3,000 in & outbound

• Operation in 3 daily shifts, 6 days a weekOperation in 3 daily shifts, 6 days a week

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ש בי

כ6

נסטלה - אסם

UMI

שוהם באתר כללית העמדה

Thank you.Thank you.

SLE's CredoSLE's CredoSLE's CredoSLE's Credo

"We are committed to provide

a superior range of service and solutions

to support our customer & distribution partners

in achieving their objectives.”

"We are committed to provide

a superior range of service and solutions

to support our customer & distribution partners

in achieving their objectives.”