Global Accounting 1 Global Finance Systems – Change in Mind Set Oracle ERP <> Hyperion Consolidation <> Hyperion Planning Kobi Altman Head of Global Accounting

Global Accounting 2 The “Teva finance way” – Basic principles  Global, multi functional-currencies,  Teva is growing also by constant acquisitions  Independence and responsibility of countries CFO  Big and growing amount of inter-company transactions – goods & services  Regional HQ are not sub-consolidating  One system for legal entities and BU reporting

Global Accounting 3 HFM project – Basic requirements  Simple! Simple! Simple!  No customizations & enhancements,  All Teva needs should be OOB – regular industrial global concern  Rely on best practices  Extensive use of validation rules  Checks & controls  Many viewers to the systems – responsibilities!  Flexibility to changes  Always there will be entities outside Oracle – Robust solution  Delivery on-time!

Global Accounting 4 Finance Global Model - principles  One language  Quality  A higher level of accuracy in Teva’s financial reporting  Consistent reporting – global manual for each account  Closing Process  Shorter  Automated  Transparency - Enables visibility and traceability on all levels of the organization  Standardization  Simpler processes  Knowledge sharing  Training

Global Accounting 5 Finance Global Model – principles (Cont’)  M&A - facilitate the integration of new companies  Inter-company  Automated  Products history and origin  One database – everyone fish in the same pond  Modern system – future product roadmap  XBRL  Future connectivity to Hyperion Planning  Future drill down to Oracle GL  Future version releases  Shared service centers  SOX

Global Accounting 6  Shorten the quarterly closing process while improving quality, by:  Adopt best practices  Automate manual process  Improve the subsidiaries reporting package tools and processes  Keep it simple  Build the infrastructure to support Teva’s growth strategy and the derived changes while complying with the current needs and org structure, by:  Move from in-house built solution to product  Identify the Teva’s consolidated building blocks  Keep some flexibility for future unpredicted needs User’s Bottom Line: Easier and Better Reporting Process GARP - What are we trying to achieve?

Global Accounting 7 Why HFM?  Part of Teva’s Oracle strategy  Big customer-base (enjoy other’s requests, secure Oracle commitment)  Very reach functionality – automated cash-flow, Web forms for Notes, reports, interfaces  Process control  Robust solution for currencies handling  Users friendly – Finance oriented, maintained by the users

Global Accounting 8 Phase 1 Architecture TNA Coda Prod all dimensions FDQM Reporting Consolidated Building Blocks HFM cash flow appendix Data Master Data Other Data Sources

Global Accounting 9 Project Timeline

Global Accounting 10 Key Success factors – Interim conclusions  Go by the “book” – Do not make bypasses  Identify your overall IT Strategy before “jumping” into the project  Plan enough time for functional design. A project is an opportunity  Do not push the timeline. “If it should take a year – it will take a year”  Do not compromise on the team\suppliers quality\experience  Deep involvement\commitment of the business

Global Accounting 11 Thank you!