Alcon Ag · SIX:ALC
Alcon — Q4 2024 Earnings Presentation
31 slides from Alcon's earnings presentation, Feb 26, 2025
Slide 1: Fourth-Quarter and Full-Year 2024 Earnings Presentation
Fourth-Quarter and Full-Year 2024 Earnings Presentation February 25, 2025 1
Slide 2: Safe harbor
Safe harbor Forward-looking statements This press release contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking state
Slide 3: Agenda
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 3
Slide 4: Key topics
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 4
Slide 5: Select financial highlights
Select financial highlights 1 4Q24 Sales of $2.5B, up 6% year-over-year Net sales Core operating margin 1 on a reported and cc basis 4Q24 Operating margin of 15.9%, up 700 4Q24 $2.5B 4Q24 20.1% basis points (bps) y/y; up 710 bps cc 4Q24 Core operating margin of 20.1%, up 4Q23 $2.3B 4Q23 18.9% 120 bp
Slide 6: Sales
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 6
Slide 7: FY 2024 Product mix
1 FY 2024 Product mix Vision Care $4.3B (44%) Surgical $5.5B (56%) Ocular health (40%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Steroid eye drops Glaucoma implants Glaucoma eye drops Contact lens care Consumables (52%) $9.8 billion Dedicated consu
Slide 8: Q4 2024 Surgical Net Sales
Q4 2024 Surgical Net Sales 1 (USD) (CC) Surgical growth reflects strength in (USD $M) international markets $1,352 $1,423 5% 5% $456 $438 4% 2% + • Implantables growth led by advanced technology intraocular lenses in international markets $688 $738 7% 7% + • Consumables growth driven by vitreoretina
Slide 9: Q4 2024 Vision Care Net Sales
Q4 2024 Vision Care Net Sales Vision Care growth reflects strength in contact lenses (USD $M) (USD) (CC)1 $1,054 8% 7% $980 • Product innovation drove sales of contact lenses, + including toric and multifocal modalities • Price increases across contact lens portfolio $638 10% 11% $579 + • Growth in
Slide 10: IFRS results
Agenda 01 Key topics 02 Sales 03 IFRS Results 04 Core results 05 Outlook 10
Slide 11: Q4 2024 IFRS results
Q4 2024 IFRS results Worldwide net sales Operating margin Diluted EPS 1 $0.86 $2.5B 15.9% $2.3B $0.57 8.9% 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Y/Y change (USD): +6% +700 bps -34% 11 1. 4Q23 includes a tax benefit of $263M associated with a long-term agreement with Swiss tax authorities for deductibility o
Slide 12: FY 2024 IFRS results
FY 2024 IFRS results Worldwide net sales Operating margin Diluted EPS 1 14.4% $2.05 $9.8B $1.96 $9.4B 11.1% FY23 FY24 FY23 FY24 FY23 FY24 Y/Y change (USD): +5% +330 bps +5% 12 1. FY23 includes a tax benefit of $263M associated with a long-term agreement with Swiss tax authorities for deductibility o
Slide 13: Q4 2024 IFRS operating margin bridge
Q4 2024 IFRS operating margin bridge 4Q24 vs. 4Q23, % of net sales 5.2 16.0 (0.1) 15.9 1.8 0.6 (0.5) 8.9 4Q23 Gross SG&A R&D Other income/ Foreign 4Q24 Margin expense1 Exchange 1. 4Q24 included a $57 million net gain related to the divestment of certain product rights in China. 4Q23 included $57 mil
Slide 14: FY 2024 IFRS operating margin bridge
FY 2024 IFRS operating margin bridge FY24 vs. FY23, % of net sales 2.1 15.0 14.4 1.4 — (0.6) 11.1 0.4 FY23 Gross SG&A R&D Other income/ Foreign FY24 Margin expense1 Exchange 14 1. FY24 operating margin included a $57 million net gain related to the divestment of certain product rights in China. FY23
Slide 15: Core results
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 15
Slide 16: Q4 2024 Core results
1 Q4 2024 Core results Worldwide net sales Core operating margin Core diluted EPS $0.70 $0.72 $2.5B 20.1% $2.3B 18.9% 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Y/Y change (cc): +6% +130 bps +3% 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures.
Slide 17: FY 2024 Core results
1 FY 2024 Core results Worldwide net sales Core operating margin Core diluted EPS 19.7% 20.6% $9.8B $3.05 $9.4B $2.74 FY23 FY24 FY23 FY24 FY23 FY24 Y/Y change (cc): +6% +140 bps +16% 17 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measu
Slide 18: Q4 2024 Core operating margin bridge
1 Q4 2024 Core operating margin bridge 4Q24 vs. 4Q23, % of net sales 1.7 20.2 20.1 (0.9) 0.7 (0.2) (0.1) 18.9 4Q23 Gross Margin SG&A R&D Other income/ Foreign 4Q24 expense Exchange Key drivers 1 • Core gross margin improvement reflects favorable product mix and manufacturing efficiencies in Vision C
Slide 19: FY 2024 Core operating margin bridge
1 FY 2024 Core operating margin bridge FY24 vs. FY23, % of net sales 1.4 — 0.1 21.1 20.6 (0.5) 19.7 (0.1) Includes (0.3) points of supplier- related inventory provisions FY23 Gross Margin SG&A R&D Other income/ Foreign FY24 expense Exchange Key drivers 1 • Core gross margin decreased, reflecting hig
Slide 20: FY 2024 Cash flow and balance sheet highlights
FY 2024 Cash flow and balance sheet highlights Cash and cash equivalents $1.7 billion FY24 cash flows from operations $2.1 billion 1 FY24 free cash flow $1.6 billion Capex $473 million Investments in new contact lens manufacturing capacity Debt $4.6 billion No financial covenants 20 1. Free cash flo
Slide 21: Outlook
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 21
Slide 22: FY 2025 Outlook
FY 2025 Outlook 1 2025 outlook as of February Net sales (USD) $10.2 to $10.4 billion 2 Change vs. prior year (cc) +6% to +8% (non-IFRS measure) 2 Core operating margin 21% to 22% (non-IFRS measure) 3 Non-operating income & expense $200 to $220 million 4 Core effective tax rate ~20% (non-IFRS measure
Slide 23: Appendix
Appendix 23
Slide 24: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 25: Reconciliation of IFRS results to core results, Q4 2024
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended December 31, 2024 Divestment of IFRS Amortization of certain product Other Core results (1) (3) (5) ($ millions except earnings per share) results intangible assets rights items (non-IFRS measure) Gross profit 1,385
Slide 26: Reconciliation of IFRS results to core results, Q4 2023
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended December 31, 2023 Amortization of Core results IFRS certain intangible Transformation Other (non-IFRS (1) (4) (5) ($ millions except earnings per share) results assets costs items measure) Gross profit 1,290 164 — (
Slide 27: Reconciliation of IFRS results to core results, FY 2024
Reconciliation of IFRS results to core results (non-IFRS measure) Twelve months ended December 31, 2024 Amortization of Divestment of Core results certain intangible product Other (non-IFRS (1) (2) (3) (5) ($ millions except earnings per share) IFRS results assets Impairments rights items measure) G
Slide 28: Reconciliation of IFRS results to core results, FY 2023
Reconciliation of IFRS results to core results (non-IFRS measure) Twelve months ended December 31, 2023 Amortization of Core results IFRS certain intangible Transformation Other (non-IFRS (1) (4) (5) ($ millions except earnings per share) results assets costs items measure) Gross profit 5,247 663 —
Slide 29: Explanatory footnotes to IFRS to core reconciliation tables
Reconciliation of IFRS results to core results (non-IFRS measure) Explanatory footnotes to IFRS to core reconciliation tables (1) Includes recurring amortization for all intangible assets other than software. (2) Includes impairment charges related to intangible assets. (3) For the three and twelve
Slide 30: Reconciliation of free cash flow
Reconciliation of free cash flow (non-IFRS measure) The following is a summary of free cash flow for the twelve months ended December 31, 2024 and 2023, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2024 2023 Net c
Slide 31: Alcon
Alcon SEE BRILLIANTLY