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IR Contacts
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IR Contacts United States Kevin C. Mannix (215) 591-8912 Yael Ashman 972 (3) 914-8262

PR Contacts United States

Israel

Kelley Dougherty Yonatan Beker

IR Contacts United States Kevin C. Mannix (215) 591-8912

Yael Ashman 972 (3) 914-8262

PR Contacts United States

Israel

Kelley Dougherty Yonatan Beker

IR Contacts	United States	Kevin C. Mannix	(215) 591-8912
		Yael Ashman	972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810

Israel

Kelley Dougherty Yonatan Beker

· Amortization of purchased intangible assets of \$242 million, of which \$215 million is included in cost of sales and the remaining \$27 million in S&M expenses;
· Impairment of long-lived assets of \$127 million, comprised mainly of impairment of intangible assets of IPR&D and product rights assets in connection with the Actavis Generics acquisition;
Legal settlements and loss contingencies of \$104 million, mainly related to a provision for a potential patent setlement;
· Restructuring expenses of \$81 million;
· Finance expense of \$64 million, related to revaluation of marketable securities;
· Equity compensation expenses of \$31 million;
· Other items of \$57 million; and
Income tax of \$85 million. .

Teva believes that excluding such items facilitates investors' understanding of its business. For further information, see the tables below for a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and the information under "Non-GAAP Financial Measures." Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.

Cash flow used in operating activities during the first quarter of 2021 was \$405 million, compared to \$305 million generated in the first quarter of 2020. The decrease in the first quarter of 2021 was mainly due to changes in working capital items resulting from a decrease in sales reserves and allowances (SR&A) and an increase in inventory, as well as lower profit in our Europe segment.

Free cash flow (cash flow from operating activities, cash used for capital investments, beneficial interest collected in exchange for securitized accounts receivables and proceeds from divestitures of businesses and other assets) was \$59 million in the first quarter of 2021, compared to \$551 million in the first quarter of 2020. The decrease in the first quarter of 2021 resulted mainly from lower cash flow from operating activities, partially offset by higher sales of assets.

As of March 31, 2021, our debt was \$24,986 million, compared to \$25,919 million as of December 31, 2020. This decrease was mainly due to redemption of \$491 million of our convertible senior debentures and exchange rate fluctuations. The portion of total debt classified as short-term as of March 31, 2021 was 11%, compared to 12% as of December 31, 2020. Our average debt maturity was approximately 5.6 years as of March 31, 2021, compared to 5.8 years as of December 31, 2020. Our financial leverage was 69% as of March 31, 2021, compared to 70% as of December 31, 2020.

IR Contacts	United States	Kevin C. Mannix Yael Ashman	(215) 591-8912 972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810
	Israel	Yonatan Beker	972 (54) 888 5898

Segment Results for the First Quarter of 2021

North America Segment

Our North America seqment includes the United States and Canada.

The following table presents revenues, expenses and profit for our North America segment for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
		2021			2020
		(U.S. \$ in millions / % of Segment Revenues)
Revenues S	1,989	100%	ળ	2,082	100%
Gross profit	1,074	54.0%		1.062	51.0%
R&D expenses	160	8.0%		146	7.0%
S&M expenses	229	11.5%		251	12.1%
G&A expenses	111	5.6%		118	5.6%
Other income	(3)	ഗ്ര		(2)	ದ
Seqment profit* \$	577	29.0% S		550	26.4%

* Segment profit does not include amortization and certain other items.

& Represents an amount less than 0.5%.

Revenues from our North America segment in the first quarter of 2021 were \$1,989 million, a decrease of \$94 million, or 5%, compared to the first quarter of 2020, mainly due to a decrease in revenues from Anda, COPAXONE and BENDEKA/TREANDA, partially offset by higher revenues from generic products and AUSTEDO. Our North America segment has experienced some reductions in volume due to less physician and hospital activity during the COVID-19 pandemic, but has also experienced increase in demand for certain products related to the treatment of COVID-19 and its symptoms. In addition, the ability to promote certain specialty products, primarily AJOVY and AUSTEDO, has been impacted by less physician visits by patients and less physician interactions by our sales personnel.

Revenues in the United States, our largest market, were \$1,854 million in the first quarter of 2021, a decrease of \$87 million, or 4%, compared to the first quarter of 2020.

Revenues by Major Products and Activities

The following table presents revenues for our North America segment by major products and activities for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,				Percentage Change
	2021			2020	2020-2021
		(U.S. \$ in millions)
Generic products		1,053	റ	952	11%
AJOVY		31		29	8%
AUSTEDO		146		122	20%
BENDEKA/TREANDA		91		105	(14%)
COPAXONE		164		198	(17%)
ProAir*		54		59	(9%)
Anda		289		426	(32%)
Other		161		191	(16%)
Total		1,989	S	2,082	(5%)

IR Contacts United States Kevin C. Mannix (215) 591-8912

Yael Ashman 972 (3) 914-8262

PR Contacts United States

Israel

Kelley Dougherty Yonatan Beker

IR Contacts United States Kevin C. Mannix (215) 591-8912 PR Contacts United States

Yael Ashman 972 (3) 914-8262

Israel

Kelley Dougherty Yonatan Beker

Temo

	Three months ended March 31,
	2021		2020
			(U.S. \$ in millions / % of Segment Revenues)
Revenues 5	1,214	100% 5	1.402	100%
Gross profit	688	56.6%	823	58.7%
R&D expenses	66	5.4%	55	3.9%
S&M expenses	214	17.7%	202	14.4%
G&A expenses	70	5.8%	રિક	4.7%
Other income	S	ട്	(1)
Seqment profit* S	338	27.8% \$	502	35.8%

* Segment profit does not include amortization and certain other items.

§ Represents an amount less than \$1 million or 0.5%, as applicable.

Revenues from our Europe segment in the first quarter of 2021 were \$1,214 million, a decrease of 13%, or \$188 million, compared to the first quarter of 2020. In local currency terms, revenues decreased by 20%, mainly due to higher revenues in first quarter of 2020 as a result of significant customer stocking due to the COVID-19 pandemic. In addition, revenues were impacted by lower demand of generic, OTC and respiratory products resulting from a decline in doctor and hospital visits by patients resulting in fewer prescriptions as well as lower sales of cough and cold products, both due to the COVID-19 pandemic. The decrease in revenues is also attributed to a decline in COPAXONE revenues due to competing glatiramer acetate products and price declines in oncology products as a result of generic competition.

Revenues by Major Products and Activities

The following table presents revenues for our Europe segment by major products and activities for the three months ended March 31, 2021 and 2020:

				Three months ended March 31,			Percentage Change
					2021		2020	2020-2021
				(U.S. \$ in millions)
		Generic products		S	865	S	1.032	(16%)
		AJOVY			16		ব	251%
COPAXONE					100		109	(8%)
Respiratory products					ਰਤੋ		106	(12%)
		Other			140		151	(7%)
		Total			5 1,214		1.402	(13%)

IR Contacts	United States	Kevin C. Mannix	(215) 591-8912
		Yael Ashman	972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810
	Israel	Yonatan Beker	972 (54) 888 5898

Generic products revenues in our Europe segment in the first quarter of 2021, including OTC products, decreased by 16% to \$865 million, compared to the first quarter of 2020. In local currency terms, revenues decreased by 23% compared to the first quarter of 2020, mainly due to higher revenues in first quarter of 2020 as a result of significant customer stocking due to the COVID-19 pandemic. In addition, revenues were impacted by lower demand of generic and OTC products resulting from a decline in doctor and hospital visits by patients resulting in fewer prescriptions as well as lower sales of cough and cold products, both due to the COVID-19 pandemic.

AJOVY revenues in our Europe segment in the first quarter of 2021 were \$16 million, compared to \$4 million in the first quarter of 2020, mainly due to launches and reimbursements in additional European countries.

COPAXONE revenues in our Europe seqment in the first quarter of 2021 decreased by 8% to \$100 million, compared to the first quarter of 2020. In local currency terms, revenues decreased by 15%, due to price reductions and a decline in volume resulting from competing glatiramer acetate products.

Respiratory products revenues in our Europe segment in the first quarter of 2021 decreased by 12% to \$93 million, compared to the first quarter of 2020. In local currency terms, revenues decreased by 19%, mainly due to significant customer stocking due to the COVID-19 pandemic in first quarter of 2020, as well as reduced demand resulting from COVID-19 restrictions in the first quarter of 2021.

Europe Gross Profit

Gross profit from our Europe segment in the first quarter of 2021 was \$688 million, a decrease of 17% compared to \$823 million in the first quarter of 2020.

Gross profit margin for our Europe segment in the first quarter of 2021 decreased to 56.6%, compared to 58.7% in the first quarter of 2020. This decrease was mainly due to lower revenues, as discussed above and increased write-offs and obsolescence provisions as a result of increased inventory levels.

Europe Profit

Profit from our Europe segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.

Profit from our Europe segment in the first quarter of 2021 was \$338 million, a decrease of 33%, compared to \$502 million in the first quarter of 2020. This decrease was mainly due to lower revenues, as discussed above.

International Markets Segment

Our International Markets segment includes all countries in which we operate other than those in our North America and Europe segments. The key markets in this segment are Japan, Russia and Israel.

On February 1, 2021, we completed the sale of the majority of the generic and operational assets of our business venture in Japan.

The following table presents revenues, expenses and profit for our International Markets segment for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,
	2021		2020
			(U.S. \$ in millions / % of Segment Revenues)
Revenues S	490	100%	565	100%
Gross profit	260	53.0%	305	54.0%
R&D expenses	18	3.6%	15	2.7%
S&M expenses	છે.	19.6%	106	18.8%
G&A expenses	26	5.3%	34	6.0%
Other income	(2)	ക	(6)	(1.1%)
Seqment profit* S	122	24.9% S	156	27.6%

* Segment profit does not include amortization and certain other items.

& Represents an amount less than 0.5%.

Revenues from our International Markets segment in the first quarter of 2021 were \$490 million, a decrease of \$75 million, or 13%, compared to the first quarter of 2020. In local currency terms, revenues decreased by 7% compared to the first quarter of 2020, mainly due to lower revenues in Japan resulting from the divestment mentioned above, as well as regulatory price reductions and generic competition to off-patented products in Japan and lower positive impact from hedging activity.

Revenues by Major Products and Activities

The following table presents revenues for our International Markets segment by major products and activities for the three months ended March 31, 2021 and 2020:

	Three months ended March 31,				Percentage Change
	2021			2020	2020-2021
	(U.S. \$ in millions)
Generic products	ഗ	392	ഗ	449	(13%)
COPAXONE		12		12	(1%)
Other		86		104	(17%)
Total		490		રે રેણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધન	(13%)

IR Contacts	United States	Kevin C. Mannix Yael Ashman	(215) 591-8912 972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810
	Israel	Yonatan Beker	972 (54) 888 5898

tevo

resulting from regulatory price reductions and generic competition to off-patented products, partially offset by lower S&M expenses.

Other Activities

We have other sources of revenues, primarily the sale of active pharmaceutical ingredients ("APIs") to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our North America, Europe or International Markets segments described above.

Our revenues from other activities in the first quarter of 2021 were \$289 million, a decrease of 6% compared to the first quarter of 2020. In local currency terms, revenues decreased by 9%.

API sales to third parties in the first quarter of 2021 were \$178 million, flat in both U.S. dollar and local currency terms, compared to the first quarter of 2020.

United States Kevin C. Mannix IR Contacts (215) 591-8912 Yael Ashman 972 (3) 914-8262 PR Contacts United States Kelley Dougherty (973) 832-2810 972 (54) 888 5898 Israel Yonatan Beker

Conference Call

Teva will host a conference call and live webcast including a slide presentation on Wednesday, April 28, 2021 at 8:00 a.m. ET to discuss its first quarter of 2021 results and overall business environment. A question & answer session will follow.

In order to participate, please dial the following numbers:

Passcode:	8347148
Israel:	1 (809) 203-624
International:	+44 (0) 2071 928000
United States:	1 (866) 966-1396

A live webcast of the call will be available on Teva's website at: ir.tevapharm.com.

Following the conclusion of the call, a replay of the webcast will be available within 24 hours on the Company's website or by calling United States 1-866-331-1332; International +44 (0) 3333 009785; passcode: 8347148.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people's lives for more than a century. We are a global leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of specialty and biopharmaceutical products. Learn more at http://www.tevapharm.com.

Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts.

Non-GAAP Financial Measures

This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP EPS, non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross profit marqin, EBITDA, Adjusted EBITDA, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP financial expenses, non-GAAP income taxes, non-GAAP income (loss) before income taxes, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS are presented in order to facilitates investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of

IR Contacts	United States	Kevin C. Mannix Yael Ashman	(215) 591-8912 972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810
	Israel	Yonatan Beker	972 (54) 888 5898

directors use the non-GAAP measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management's annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP figures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known, that could cause our future results, performance or achievements to differ significantly from that 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 compete in the marketplace, including: that we 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 andseeking U.S. market exclusivity for generic versions of significant 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, which may limit our ability to incur additionalindebtedness, enqage in additional transactions or make new investments, mayresult in a further downgrade 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 COVID-19 pandemic and its impact on our business, financial condition, operations, cash flows, and liquidity and on the economy in general; our ability to successfully execute and maintain the activities and efforts related to the measures we have taken or may take in response to the COVID-19 pandemic and associated costs therewith; effectiveness of our optimizationefforts; 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 propertylaws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the COVID-19 pandemic;
the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to

R Contacts	United States	Kevin C. Mannix Yael Ashman	(215) 591-8912 972 (3) 914-8262
PR Contacts	United States	Kelley Dougherty	(973) 832-2810
	srael	Yonatan Beker	972 (54) 888 5898

;

IR Contacts United States Kevin C. Mannix (215) 591-8912 Yael Ashman 972 (3) 914-8262 PR Contacts United States Israel Kelley Dougherty Yonatan Beker (973) 832-2810 972 (54) 888 5898

Consolidated Statements of Income_

	Three months ended
	March 31,
	2021	2020
	(Unaudited)	(Unaudited)
Net revenues	3,982	4,357
Cost of sales	2,104	2,294
Gross profit	1,878	2,063
Research and development expenses	254	221
Selling and marketing expenses	ર 8 રે	613
General and administrative expenses.	290	304
Intangible assets impairments	79	649
Other asset impairments, restructuring and other items	137	121
Legal settlements and loss contingencies	104	(25)
Other income	(ર)	(13)
Operating (Oss) income……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………	434	191
Financial expenses, net	290	224
Income (loss) before income taxes	144	(33)
Income taxes (benefit)	62	(રેતુ)
Share in (profits) losses of associated companies- net	(3)
Net income (loss)	84	25
Net income (loss) attributable to non-controlling interests		(44)
Net income (loss) attributable to Teva	77	ਉਹ

Earnings (loss) per share attributable to Teva:	Basic (\$)	0.07	0.06
	Diluted (\$)	0.07	0.06
Weighted average number of shares (in millions):	Basic	.099	1.093
	Diluted	1.107	1,096

Non-GAAP net income attributable to Teva:*		ઉતેતું	835
Non-GAAP net income attributable to Teva for diluted earnings per share:		ભતતિ	832
Non-GAAP earnings per share attributable to Teva:*	Basic (2)	0.64	0.76

	Diluted (\$	().6	0.76

Non-GAAP average number of shares (in millions):	Basic	1.099	1.093
	Diluted	1,107	1.096

* See reconciliation attached.

Condensed Consolidated Balance Sheets

(U.S. dollars in millions)

	March 31,	December 31,
	2021	2020
ASSETS	(Unaudited)	(Audited)
Current assets:
Cash and cash equivalents	1,743	2,177
Accounts receivables, net of allowance for credit losses of \$119 million and \$126 million as of March 31, 2021 and December
31, 2020.	4,572	4,581
Inventories	4,406	4,403
Prepaid expenses	942	945
Other current assets	652	710
Assets held for sale	87	189
Total current assets	12,401	13,005
Deferred income taxes	691	695
Other non-current assets	524	538
Property, plant and equipment, net	6,112	6,296
Operating lease right-of-use assets	529	559
Identifiable intangible assets, net	8,445	8,923
Goodwill	20,302	20,624
Total assets	49,004	50,640
LIABILITIES & EQUITY
Current liabilities:
Short-term debt	2,697	3,188
Sales reserves and allowances	4,584	4,824
Accounts payables	1,692	1,756
Employee-related obligations	526	685
Accrued expenses	1,851	1,780
Other current liabilities	739	933
Total current liabilities	12,089	13,164

Long-term liabilities:
Deferred income taxes	991	964
Other taxes and long-term liabilities	2,220	2,240
Senior notes and loans	22,288	22,731
Operating lease liabilities	441	479
Total long-term liabilities	25,940	26,414
Equity:
Non-controlling interests	10,000 975	10,026 1,035
Total equity	10,975	11,061
Total liabilities and equity	49,004	50,640

TEVA PHARMACEUTICAL INDUSTRIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in millions) (Unaudited)

Operating activities: Net income (loss)...................................................................................................... \$ 84 \$ 25 Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation and amortization.................................................................................. 376 399 Impairment of long-lived assets and assets held for sale........................................... 127 724 Net change in operating assets and liabilities............................................................ (1,076) (666) (233) (11) Stock-based compensation........................................................................................ 31 30 Net loss (gain) from investments and from sale of long lived assets ...................... 74 24 Other items ............................................................................................................... (10) 2 Net cash provided by (used in) operating activities.............................................. 305 (405) Investing activities: Beneficial interest collected in exchange for securitized accounts receivables......... 476 368 Purchases of property, plant and equipment.............................................................. (150) (128) Proceeds from sale of business and long-lived assets................................................ 138 6 Proceeds from sale of investments and other investing activities.............................. 44 6 Net cash provided by investing activities............................................................... 252 508 Financing activities: Repayment of senior notes and loans and other long-term liabilities........................ - (700) Redemption of convertible senior notes.................................................................... (491) - Other financing activities........................................................................................... (2) - Net cash used in financing activities...................................................................... (700) (493) Translation adjustment on cash and cash equivalents......................................... (28) (44) Net change in cash and cash equivalents............................................................... (171) (434) Balance of cash and cash equivalents at beginning of period.............................. 1,975 2,177 Balance of cash and cash equivalents at end of period........................................ \$ 1,743 \$ 1,804 Non-cash financing and investing activities: Beneficial interest obtained in exchange for securitized accounts receivables \$ 488 \$ 375 March 31, 2021 2020 Three months ended

Three Months Ended March 31, 2021

	U.S. \$ and shares in millions (except per share amounts)
	GAAP		Excluded for non-GAAP measurement									Non-GAAP
		Amortization of purchased intangible assets	Legal settlements and loss contingencies	Impairment of long lived assets	Other R&D expenses	Restructuring costs	Costs related to regulatory actions taken in facilities	Equity compensation	Contingent consideration	Other non GAAP items* Other items
Net revenues	3,982											3,982
Cost of sales	2,104	215					5	6		41		1,838
Gross profit	1,878	215	-	-	-	-	5	6	-	41	-	2,144
Gross profit margin	47.2%											53.8%
R&D expenses	254				5			5				244
S&M expenses	585	27						9				549
G&A expenses	290							11				278
Other income	(5)											(5)
Legal settlements and loss contingencies	104		104									-
Other assets impairments, restructuring and other items	137			48		81			3	4		-
Intangible assets impairments	79			79								-
Operating income (loss)	434	242	104	127	5	81	5	31	3	45	-	1,077
Financial expenses, net	290										64	227
Income (loss) before income taxes	144	242	104	127	5	81	5	31	3	45	64	851
Income taxes	62										(85)	146
Share in profits (losses) of associated companies – net	(3)										2	(4)
Net income (loss)		84 242	104	127	5	81	5	31	3	45	(19)	709
Net income (loss) attributable to non-controlling interests	7										(3)	10
Net income (loss) attributable to Teva		77 242	104	127	5	81	5	31	3	45	(22)	699
Total reconciled items		242	104	127	5	81	5	31	3	45	(22)
EPS - Basic	0.07										0.57	0.64
EPS - Diluted	0.07										0.56	0.63

The non-GAAP diluted weighted average number of shares was 1,107 million for the three months ended March 31, 2021. Non-GAAP income taxes for the three months ended March 31, 2021 were 17% on pre-tax non-GAAP income.

* Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events.

Adjusted EBITDA reconciliation

Operating income (loss)	434
Add:
Depreciation	134
Amortization	242
EBITDA	809
Legal settlements and loss contingencies	104
Impairment of long lived assets	127
Other R&D expenses	5
Restructuring costs	81
Costs related to regulatory actions taken in facilities	5
Equity compensation	31
Contingent consideration	3
Other non-GAAP items (excluding accelerated depreciation of \$5 million) *	40
Adjusted EBITDA	1,206

		U.S. \$ and shares in millions (except per share amounts)
	GAAP	Excluded for non-GAAP measurement										Non-GAAP
		Amortization of purchased intangible assets	Legal settlements and loss contingencies	Impairment of long lived assets	Other R&D expenses	Restructuring costs	Costs related to regulatory actions taken in facilities	Equity compensation	Contingent consideration	Other non GAAP items* Other items
Net revenues	4,357											4,357
Cost of sales	2,294	223						4	6	15		2,046
Gross profit	2,063	223	-	-	-	-		4	6	- 15	-	2,312
Gross profit margin	47.3%											53.1%
R&D expenses	221				(4)				5			221
S&M expenses	613	35							9			570
G&A expenses	304							10		4		290
Other income	(13)											(13)
Legal settlements and loss contingencies	(25)		(25)									-
Other assets impairments, restructuring and other items	121			75			39			6 1		-
Intangible assets impairments	649			649								-
Operating income (loss)	191	258		(25) 724		(4)	39	4 30		6 20	-	1,244
Financial expenses, net	224										11	213
Income (loss) before income taxes		(33) 258		(25) 724		(4)	39	4 30		6 20	11	1,030
Income taxes	(59)										(234)	175
Share in profits (losses) of associated companies – net	1											1
Net income (loss)	25	258		(25) 724		(4)	39	4 30		6 20	(223)	854
Net income (loss) attributable to non-controlling interests	(44)										(63)	20
Net income (loss) attributable to Teva	69	258		(25) 724		(4)	39	4 30		6 20	(286)	835
Total reconciled items		258		(25) 724		(4)	39	4 30		6 20	(286)
EPS - Basic	0.06										0.70	0.76
EPS - Diluted	0.06										0.70	0.76

Three Months Ended March 31, 2020

The non-GAAP diluted weighted average number of shares was 1,096 million for the three months ended March 31, 2020. Non-GAAP income taxes for the three months ended March 31, 2020 were 17% on pre-tax non-GAAP income.

Adjusted EBITDA reconciliation
Operating income (loss)	191
Add:
Depreciation	141
Amortization	258
EBITDA	590
Legal settlements and loss contingencies	(25)
Impairment of long lived assets	724
Other R&D expenses	(4)
Restructuring costs	39
Costs related to regulatory actions taken in facilities	4
Equity compensation	30
Contingent consideration	6
Other non-GAAP items (excluding accelerated depreciation of	10
\$10 million) *
Adjusted EBITDA	1,375

Segment Information

	North America Three months ended March 31,				Europe					International Markets
					Three months ended March 31,				Three months ended March 31,
	2021			2020		2021		2020		2021		2020
	(U.S. \$ in millions)				(U.S. \$ in millions)				(U.S. \$ in millions)
Revenues \$		1,989	\$	2,082	\$	1,214	\$	1,402	\$	490	\$	565
Gross profit		1,074		1,062		688		823		260		305
R&D expenses		160		146		66		55		18		15
S&M expenses		229		251		214		202		96		106
G&A expenses		111		118		70		66		26		34
Other income		(3)		(2)		§		(1)		(2)		(6)
Segment profit \$		577	\$	550	\$	338	\$	502	\$	122	\$	156

§ Represents an amount less than \$1 million.

Reconciliation of our segment profit to consolidated income before income taxes

	Three months ended
	March 31,
		2021	2020 (U.S.\$ in millions)

North America profit	\$	577	\$	550
Europe profit		338		502
International Markets profit		122		156
Total segment profit		1,036		1,208
Profit of other activities		41		36
		1,077		1,244
Amounts not allocated to segments:
Amortization		242		258
Other asset impairments, restructuring and other items		137		121
Intangible asset impairments		79		649
Legal settlements and loss contingencies		104		(25)
Other unallocated amounts		82		49
Consolidated operating income (loss)		434		191
Financial expenses - net		290		224
Consolidated income (loss) before income taxes		\$ 144	\$	(33)

Segment revenues by major products and activities (Unaudited)

	Three months ended
	March 31,	Percentage Chan
	2020 2021		2020-2021
	(U.S.\$ in millions)
North America segment
Generic products	\$ 1,053	\$	952	11%
AJOVY	31		29	8%
AUSTEDO	146		122	20%
BENDEKA/TREANDA	91		105	(14%)
COPAXONE	164		198	(17%)
ProAir*	54		59	(9%)
Anda	289		426	(32%)
Other	161		191	(16%)
Total	1,989		2,082	(5%)

* Does not include revenues from the ProAir authorized generic, which are included under generic products.

	Three months ended
		March 31,			Percentage Chan
		2021	2020		2020-2021
			(U.S.\$ in millions)
Europe segment
Generic products	\$	865	\$	1,032	(16%)
AJOVY		16		4	251%
COPAXONE		100		109	(8%)
Respiratory products		93		106	(12%)
Other		140		151	(7%)
Total		1,214		1,402	(13%)

	Three months ended
	March 31,			Percentage Chan
	2021		2020	2020-2021
	(U.S.\$ in millions)
International Markets segment
Generic products	\$ 392	\$	449	(13%)
COPAXONE	12		12	(1%)
Other	86		104	(17%)
Total	490		565	(13%)

Free cash flow reconciliation

(Unaudited)

	Three months ended March 31,
	2021		2020
	(U.S. \$ in millions)
Net cash provided by (used in) operating activities Beneficial interest collected in exchange for securitized accounts	(405)		305
receivables	476		368
Purchases of property, plant and equipment	(150)		(128)
Proceeds from sale of business and long lived assets	138		6
Free cash flow \$	59	\$	551

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Teva Pharmaceutical Industries Ltd.

7082_rns_2021-04-28_512408f9-9613-4ae8-a9cf-212015ebeb02.pdf

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Segment Results for the First Quarter of 2021

North America Segment

Revenues by Major Products and Activities

Temo

Revenues by Major Products and Activities

Europe Gross Profit

Europe Profit

International Markets Segment

Revenues by Major Products and Activities

tevo

Other Activities

Conference Call

About Teva

Non-GAAP Financial Measures

Cautionary Note Regarding Forward-Looking Statements

Consolidated Statements of Income_

Condensed Consolidated Balance Sheets

TEVA PHARMACEUTICAL INDUSTRIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in millions) (Unaudited)

Adjusted EBITDA reconciliation

Segment Information

Reconciliation of our segment profit to consolidated income before income taxes

Segment revenues by major products and activities (Unaudited)

Free cash flow reconciliation

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