Slide 1: Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing
~ »— Alcon, Inc. , Worldwide Leader FALEON in Ophthalmic Research and Manufacturing Timolel Maleate < = Ophthalmic &D | S ml stem ALCON Q ; TRAVATAN (travoprost ophthalmic solution) 0.004%
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained in this presentation that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. This presentation is being made on April 21, 2004, and Alcon does not undertak
Slide 3: Management Presentation
Management Presentation by Tim Sear Chairman, President & CEO Jacqualyn Fouse Senior Vice President of Finance & CFO 3
Slide 4: Financial Results
Financial Results (For the quarters ended March 31, 2004 and 2003) 4
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 04 Q1 03 Growth Global Sales $ 963.6 $ 807.1 19.4% Net Earnings $ 191.0 $ 130.2 46.7% Earnings Per Share* $ 0.61 $ 0.42 45.2% *Diluted as reported (dollars in millions, except per share amounts) 5
Slide 6: First Quarter Income Statement Detail
First Quarter Income Statement Detail % of % of Q1 04 Sales Q1 03 Sales Gross Profit $ 673.8 69.9% $ 553.8 68.6% SG & A $ 290.8 30.2% $ 264.2 32.7% Research & Development $ 90.9 9.4% $ 78.2 9.7% Effective Tax Rate 31.0% 30.4% (dollars in millions) 6
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights 3/31/04 12/31/03 Short and Long Term Borrowings $ 1,290.4 $ 1,410.3 Cash and Cash Equivalents $ 923.2 $ 1,086.0 Consolidated S/H Equity $ 1,604.9 $ 1,591.5 A/R Change 12.4% Inventory Change (5.9%) (dollars in millions) 7
Slide 8: Geographic and Product Line Sales
Geographic and Product Line Sales 8
Slide 9: Geographic Sales Breakdown
Geographic Sales Breakdown Q1 2004 Q1 2003 28.7% 26.9% 50.3% 52.8% 7.7% 7.4% 13.3% 12.9% United States United States Europe Europe Japan Japan Rest of World Rest of World 9
Slide 10: Global Product Line Sales
Global Product Line Sales Q1 2004 Q1 2003 37.5% 39.3% 15.8% 46.1% 14.6% 46.7% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer 10
Slide 11: Pharmaceutical Sales
Pharmaceutical Sales 400 + 25.3% Growth Drivers • Travatan® and Azopt® 300 • Otic franchise • Patanol® 200 $379.1 • Currency benefit $302.6 100 Challenges • Ciloxan® expiration 0 • TobraDex® Q1 2003 Q1 2004 (dollars in millions) 11
Slide 12: Vigamox Conversion Trend
VigamoxÔ Conversion Trend % of Fluoroquinolone All Prescribers Franchise 100% 80% 60% 40% 56% 52% 49% 49% 47% 20% 37% 43% 0% Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Vigamox Ciloxan (US conversion trend for Vigamox and Ciloxan) 12
Slide 13: Vigamox Share Performance
VigamoxÔ Share Performance Vigamox All Prescribers Franchise Share Share 23.5 25.0 14.0 12.0 19.6 13.2 20.0 10.0 8.0 15.0 6.0 4.0 10.0 Vigamox Franchise 2.0 0.3 0.0 5.0 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 (US market share for Vigamox and Alcon total branded anti-inf
Slide 14: Otic Franchise Share Performance
Otic Franchise Share Performance Market Share % All Prescribers 26.0 23.6 25.4 22.0 18.2 18.0 19.8 17.8 14.0 15.3 10.0 Mar April May Jun Jul Aug Sep Oct Nov Dec Jan Feb Rolling 12 2003 Rolling 12 2004 (US market share for CiproDex and Cipro HC combined) 14
Slide 15: Surgical Sales
Surgical Sales 500 Growth Drivers + 17.8% • Currency benefit 400 • Constant currency growth in Japan 300 • AcrySof® 200 $443.9 $376.9 • Infiniti™ 100 Challenges • Refractive 0 Q1 2003 Q1 2004 (dollars in millions) 15
Slide 16: AcrySof Share Performance
AcrySof Share Performance ® Market Share % 50.0 48.6 45.0 45.6 42.3 40.0 40.0 35.0 2000 2001 2002 2003 (US market share for all Acrysof intraocular lenses) 16
Slide 17: AcrySof Natural Conversion Trend
AcrySof® Natural Conversion Trend % of AcrySof® Franchise U.S. - Units 100% 80% 60% 40% 20% 24% 27% 20% 22% 17% 5% 12% 0% Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Natural Conventional 17
Slide 18: Consumer Sales
Consumer Sales 150 + 10.2% Growth Drivers • Currency benefit • Artificial tears 100 • Constant currency growth in Japan $127.6 $140.6 50 Challenges • Private label • Static disinfectant 0 market Q1 2003 Q1 2004 (dollars in millions) 18
Slide 19: 2004 Outlook
2004 Outlook 19
Slide 20: 2004 Full Year Financial Guidance
2004 Full Year Financial Guidance • Sales range from $3.75 to $3.85 billion – Ciloxan expiration – Less currency benefit • EPS range from $2.23 to $2.26 – Ciloxan expiration – Increased promotional and R&D spending – Timing of consumer advertising 20
Slide 21: Alcon, Inc.
: Alcon, Inc. \X/orldwide Leader y in Ophthalmic Beseayen and Manufacturing