Slide 1: Second Quarter 2010 Webcast
Exhibit 99.1 Second Quarter 2010 Webcast July 27, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, made on July 27, 2010, includes forward-looking statements based on current expectations and Alcon does not undertake the obligation to update the forward-looking information or statements. These expectations could differ materially from actual results and ar
Slide 3: Business Overview
Business Overview Kevin Buehler President and Chief Executive Officer
Slide 4: Delivering Solid Results
Delivering Solid Results Sustained strong top-line sales growth Q2 2010 organic growth of 11.3% (+12.5% reported) Creating P&L leverage Q2 2010 adj. operating income growth of 19.5% (+18.8% ( 18.8% reported) Q2 2010 adj. diluted EPS growth of 14.4% (+13.9% reported) C Commercial i l execution ti dri
Slide 5: Market Recovery Supporting Solid Organic Growth
Market Recovery Supporting Solid Organic Growth Global Organic Sales Growth by Quarter 12.0% 11.3% 9.6% 9.0% 8.5% 8.0% 4.8% 4.0% 3.3% 0.0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Reported -2.8% -3.4% 5.9% 14.5% 15.3% 12.5% Growth Organic sales growth is a non-GAAP measure presented to give investors a b
Slide 6: Balanced Global Growth
Balanced Global Growth Q2 2010 Sales by Geography $362 Reported: +28.8% +28 8% $890 Organic Growth: +24.2% Emerging Reported: +12.7% Markets Organic Growth: +11.8% 19.2% U.S. U S 47.2% Developed International 33.6% $634 Reported: +4.6% Organic Growth: +4.6% (dollars in millions) Growth rates as comp
Slide 7: Multiple Growth Drivers from BRIC Markets
Multiple Growth Drivers from BRIC Markets 2010 YTD Sales in BRIC Markets ® LAUREATE 62.9% Organic g Reported p (units) Growth Growth Brazil 14.0% 38.4% Phaco Paks 38.0% (units) Russia 23.7% 36.0% IOLs 38.5% ($) I di India 62 8% 62.8% 75 8% 75.8% China 33.4% 33.6% Glaucoma 35.7% ($) $ 0% 10% 20% 30%
Slide 8: Diversified Product Growth
Diversified Product Growth Q2 Global Sales by Product Line $1,000 +16.5% Organic Growth +7.4% Organic Growth +7.7% Organic Growth +17.4% Reported +8.7% Reported +9.2% Reported $800 $837 $823 $757 dollars in milliions) $713 $600 $400 (d $200 $226 $207 $0 Pharmaceuticals Surgical Consumer Q2 2009 Q2 2
Slide 9: New Products Driving Glaucoma Growth
New Products Driving Glaucoma Growth Global Glaucoma Pharmaceutical Market Share by Product DUOTRAV® + 6.0% 6.0% TRAVATAN Z® + Q2 2010 YTD 2010 AZARGA® Organic Growth 43.5% 47.1% 4 0% 4.0% Reported epo ted G Growth o t 44.0% 0% 49.9% 9 9% 2.0% 0.0% Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2
Slide 10: Severe U.S. Allergy Season
Severe U.S. Allergy Season U.S. Total Ocular Allergy Rx Volume 2010 May YTD ocular allergy prescription 1,000,000 growth was 4.7% versus -4.2% in 2009 800,000 2008 2009 2010 600,000 400,000 200,000 JAN FEB MAR APR MAY JUN JUL Source: WK Health
Slide 11: Increasing Penetration Key to AT-IOL Growth
Increasing Penetration Key to AT-IOL Growth U.S. Advanced Technology IOL Use by Cataract Surgeon Classification 100% 80% Significant opportunity to drive ~20% of U.S. 60% increased cataract surgeons utilization account for ~70% of AT-IOL implants 40% 20% 0% Cataract Surgeons AT-IOL Implantations Int
Slide 12: Strong AT-IOL Growth
Strong AT-IOL Growth Advanced Technology IOLs Global Sales AcrySof® IQ ReSTOR® and Toric delivered Q2 $90 organic growth of 22.3% (+23.8% reported) $81 9 $81.9 ns) $60 (dolllars in million $30 $0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Organic sales growth is a non-GAAP measure presented to give investo
Slide 13: 2010 Key Early Stage R&D Pipeline Activity
2010 Key Early Stage R&D Pipeline Activity ESBATech Three additional research programs identified, increasing the total programs to five Astra Zeneca Partnership Actively screening more than five research programs 15 Programs or platforms entered the pipeline at various stages g of development
Slide 14: 2010 Key Late Stage R&D Pipeline Activity
2010 Key Late Stage R&D Pipeline Activity 2010 SUBMISSIONS 2010 APPROVALS FILED PENDING RECEIVED PENDING ALLEGRETTO™ EX EX-500 500 DuoTrav® Alternative Patanase® new indication TRAVATAN® Alternative refractive laser (EU) Preservative System (EU) (US) Preservative System (EU) TRAVATAN® Alternative Mo
Slide 15: Business Development Providing Growth
Business Development Providing Growth Optonol Acquisition Further broadens Alcon’s extensive glaucoma portfolio Sales of Ex-PRESS® ophthalmic glaucoma device steadily building DUREZOL® Acquisition Provides potent steroid Zyclorin™ adds another pipeline opportunity targeted for dry eye LenSx Lasers A
Slide 16: Sustainable Long-term Growth Opportunity
Sustainable Long-term Growth Opportunity Strategically focused on important medical specialty Durability of long-term growth opportunity Alcon as unrivaled leader in eye care
Slide 17: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer
Slide 18: Sales
Sales Sales (dollars in millions) +12.5% Reported p $2,000 +11.3% Organic Growth $1,886 $1,800 $1,677 $1,600 $1,400 Q2 2009 Q2 2010 Growth rates as compared to same period in prior year Organic sales growth is a non-GAAP measure presented to give investors a better comparison of operations between y
Slide 19: Gross Profit
Gross Profit Gross Profit (dollars in millions) $1,700 +15.7% $1,500 $1,460 $1,300 $1,262 $ $1,100 $900 Q2 2009 Q2 2010 % of 75.3% 77.4% Sales Growth rates as compared to same period in prior year
Slide 20: Operating Income
Operating Income Reported Adjusted $900 (dollars in millions) $900 (dollars in millions) +18.8% 18.8% +19.5% 19.5% $800 $800 $751 $755* $700 $700 $600 $632 $600 $632 $500 $500 Q2 2009 Q2 2010 Q2 2009 Q2 2010 % of % of 37.7% 39.8% 37.7% 40.0% Sales Sales Growth rates as compared to same period in pri
Slide 21: Net Earnings and Diluted EPS
Net Earnings and Diluted EPS Net Earnings Diluted EPS $800 (dollars in millions) $2.50 +15.1% 15.1% Reported +13.9% Reported $700 $674 * $2.22 * $2.20 $670 $2.21 $600 $582 $1.90 $1.94 $500 $400 $1.60 Q2 2009 Q2 2010 Q2 2009 Q2 2010 % off Reported 34.7% 35.5% Sales Growth rates as compared to same pe
Slide 22: Raising 2010 Full Year Financial Guidance
Raising 2010 Full Year Financial Guidance • Organic growth in the high single digits • Diluted earnings per share: Adjusted EPS guidance $7.45 - $7.62 • Includes on-going U.S. health care reform costs – $20 million full-year $ y sales impact p – $0.06 full-year diluted EPS impact • Project and deal
Slide 23: Second Quarter 2010 Webcast
Second Quarter 2010 Webcast July 27, 2010
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in millions, millions except per share data) Operating Income Q2 2010 Q2 2010 Q2 2009 Growth % % of Sales As Reported $ 751 $ 632 18.8% 39.8% Change off Control Ch C t l Expenses 4 -- As Adjusted $ 7
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON INC. ALCON, INC AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Tax Rate Q2 2010 Q2 2009 As Reported 12.8 % 10.6 % Change of Control Expenses 0.1 -- As Adjusted 12.7 % 10.6 % Note: Adjusted tax rate measures the results of the company's operations withou
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (i millions) (in illi ) Three Months Ended Foreign June 30, Currency Acquisition Organic 2010 2009 Change Change Change Change Sales by Product Line: Pharmaceutical $ 837 $ 713 17.4% 0.4% 0.5% 16.5% S
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Foreign Reported Currency Acquisition Organic Total Global Sales Change Change Change Change Q1 2009 (2.8) % (7.6) % -- % 4.8 % Q2 2009 (3.4) (6.7) -- 3.3 Q3 2009 5.9 (3.1) -- 9.0 Q4 2009 14.5 6.0 --
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Foreign ® ® DuoTrav + Travatan Z + Reported Currency Acquisition Organic ® AZARGA Change Change Change Change Q2 2010 44.0 % 0.5 % -- % 43.5 % YTD 2010 49.9 2.8 -- 47.1 Foreign Reported Currency Acqui