Novartis Ag · SIX:NOVN

Novartis — Corporate Update (May 2011)

25 slides from Novartis's corporate update, May 18, 2011

  1. Slide 1: The new Novartis divisional structure following the merger with Alcon

    The new Novartis divisional structure following the merger with Alcon Investor Call May 18, 2011 アルコン合併に伴う ノバルティスの新しい部門体制 投資家向け電話会議 2011年5月18日 1

  2. Slide 2: Disclaimer

    Disclaimer The following presentation contains forward-looking statements that can be identified by terminology such as "effective," "will," or similar expressions, or by express or implied discussions regarding potential growth opportunities from the merger of Alcon and Novartis, or the potential i

  3. Slide 3: Agenda

    Agenda Introduction Jon Symonds Chief Financial Officer The new Alcon Division Kevin Buehler Division Head Alcon Summary Jon Symonds Chief Financial Officer 5 | Novartis Investor Call | May 18, 2011 | Investor Presentation 議題 はじめに ジョン・サイモンズ 最高財務責任者 新しいアルコン部門 ケビン・ビューラー アルコン部門ヘッド まとめ ジョン・サイモンズ 最高財務責任者

  4. Slide 4: Introduction

    Introduction  What do we provide ? • Restated income statements for Pharmaceuticals, Alcon, Sandoz, Consumer Health and Corporate • Supplementary pro forma income statements including 100 % of Alcon from January 1, 2010 • Restated and pro forma data cover the periods Q1-Q4/2010 and Q1 2011 • Q1 201

  5. Slide 5: Adjustments

    Adjustments  Reflects new divisional allocation of businesses after Alcon merger  Structure for reporting from Q2 2011 onwards Restated  Does not adjust prior quarters for subsequent, merger related product divestments  Reflects actual Alcon shareholding in any given quarter  Reflects new divis

  6. Slide 6: Restatement of Q1 2011 income statement

    Restatement of Q1 2011 income statement The segmental consolidated income statement data has been restated compared to that issued on April 19, 2011 to reflect the following changes:  The new divisional allocation of businesses following the 100% integration of Alcon into Novartis Group  The chang

  7. Slide 7: Restatement: Summary of changes on reporting structure from Q2 2011

    Restatement: Summary of changes on reporting structure from Q2 2011 onwards Pharmaceuticals Consumer Health Corporate Ophthalmics1 Pharmaceuticals Divisional headquarter costs2 Consumer Eye Care Surgical Restatement OTC Ophthalmic Pharma Animal Health Vision Care 1 principally excluding Lucentis® 2

  8. Slide 8: Pro forma data for Alcon for comparison with 2011 income statement

    Pro forma data for Alcon for comparison with 2011 income statement  Follows new divisional allocation of activities down to operating income  The 2010 divisional pro forma consolidated income statement of Alcon for the 2010 periods prior to August 25, 2010 is given solely for the purpose of provid

  9. Slide 9: Alcon pro forma: Summary of changes

    Alcon pro forma: Summary of changes Pharmaceuticals Consumer Health Corporate Ophthalmics1 Pharmaceuticals Restatement Consumer Eye Care Incl. Alcon, Inc. consolidated income Pro forma statement for all of 2010 Excl. CIBA Vision Divestments and other exceptional costs 1 principally excluding Lucenti

  10. Slide 10: Summary of divisional financials for FY 2010 and Q1/2011

    Summary of divisional financials for FY 2010 and Q1/2011 Pharmaceuticals Alcon Sandoz Consumer Health (USD m) 2010 Q1 2011 2010 Q1 2011 2010 Q1 2011 2010 Q1 2011 Sales Reported 30 558 7 765 2 4262 1 931 8 518 2 318 6 204 1 642 Restated 30 306 7 698 4 4462 2 416 8 592 2 373 4 362 1 169 Pro forma 30 2

  11. Slide 11: Agenda

    Agenda Introduction Jon Symonds Chief Financial Officer The new Alcon Division Kevin Buehler Division Head Alcon Summary Jon Symonds Chief Financial Officer 21 | Novartis Investor Call | May 18, 2011 | Investor Presentation 議題 はじめに ジョン・サイモンズ 最高財務責任者 新しいアルコン部門 ケビン・ビューラー アルコン部門ヘッド まとめ ジョン・サイモンズ 最高財務責任

  12. Slide 12: The Alcon Division's vision and mission

    The Alcon Division’s vision and mission Vision To be the most trusted leader in eye care Mission Pharma Ophtha To provide innovative products that enhance quality of life by helping people see better 23 | Novartis Investor Call | May 18, 2011 | Investor Presentation アルコン部門のビジョン及びミッション ビジョン アイケアにおいて

  13. Slide 13: The new Alcon Division

    The new Alcon Division Q1 2011 pro forma sales1 Total Alcon Division: USD 2.4 bn (+11 %) Ophthalmic Surgical Vision Care Pharmaceuticals USD 845 m (+9%) USD 985 m (+16%) USD 577 m (+4%) 1 Pro forma includes CIBA Vision, Novartis Ophthalmics (principally excluding Lucentis,® ) and excludes Falcon 25

  14. Slide 14: Eye Care Market environment: Highly attractive specialty healthcare segment

    Eye Care Market environment: Highly attractive specialty healthcare segment Aging global demographics UTILIZATION and less developed regions Population over 65 years of age will increase demand 1.3 billion +139% High perceived value by VALUE payer systems and patients +29% 934 +186% 523 +36% Pricing

  15. Slide 15: Projected Eye Care Market

    Projected Eye Care Market (in USD bn) 2011 Eye Care Market = USD 28.7 bn 2011-2016 CAGR: ~5% 0.8 0.4 Contact Lens 0.9 1.0 Glaucoma 6.8 1.3 Cataract Retina (Rx) 2.2 Anti Infectives/AI - Combo Dry Eye 2.4 Contact Lens care 4.9 Ocular Allergy 3.2 Vitamins/Other Vitreoretinal 4.8 Refractive Source: Alco

  16. Slide 16: Eye Care Market segments: Alcon Division participates in most product categories

    Eye Care Market segments: Alcon Division participates in most product categories Eye Care Market Ethically- Surgical Surgical Diagnostic Contact Contact Segments Pharma driven OTC Devices Equipment Equipment Lenses Lens Care Vision- Multi- Glaucoma Dry Eye Cataract Cataract Cataract correcting purpo

  17. Slide 17: Alcon leads a highly competitive market

    Alcon leads a highly competitive market Strong Weak (Level of competitiveness) position position Vision Care Ophthalmic Surgery Ophthalmic Companies Contact Contact Dry Eye(2) / Cataract / Total Pharma(1) Refractive Lenses Lens Care Other Vitreoretinal Alcon Bausch & Lomb Abbott (AMO) Allergan Pfize

  18. Slide 18: The three businesses of the Alcon Division

    The three businesses of the Alcon Division Q1 2011 Q1 2010 % Growth % Growth  Procedure growth Pro forma USD m USD m USD CC  Advanced technology IOL Cataract products 681 643 6% 4% conversion Surgical  Comprehensive product Cataract IOLs 309 292 6% 4% Vitreoretinal products 122 99 23% 20% offerin

  19. Slide 19: Agenda

    Agenda Introduction Jon Symonds Chief Financial Officer The new Alcon Division Kevin Buehler Division Head Alcon Summary Jon Symonds Chief Financial Officer 37 | Novartis Investor Call | May 18, 2011 | Investor Presentation 議題 はじめに ジョン・サイモンズ 最高財務責任者 新しいアルコン部門 ケビン・ビューラー アルコン部門ヘッド まとめ ジョン・サイモンズ 最高財務責任

  20. Slide 20: Summary

    Summary  Restated income statement reflects the new divisional structure following the Alcon merger  Pro forma including 100% of Alcon from January 1, 2010 and excluding subsequent, merger related divestments as a base for comparison  New Alcon Division clearly positioned as the leader in eye car

  21. Slide 21: Appendix

    th NovarTIs th Novartis 21

  22. Slide 22: Pharmaceuticals Division

    Pharmaceuticals Division Restated Q1 2011 Q1 2010 % change USD m USD m USD cc Net sales 7 698 7 227 7 5 Operating income 2 461 2 245 10 13 As % of net sales 32.0 31.1 Core operating income 2 542 2 350 8 11 As % of net sales 33.0 32.5  Transfer of certain ophthalmic products to Alcon : Q1 2011 Net s

  23. Slide 23: Alcon Division

    Alcon Division Restated  Q1 2010 only includes CIBA Vision Q1 2011 Q1 2010 % change and Pharmaceuticals Ophthalmics products USD m USD m USD cc Net sales 2 416 507 377 368  CIBA Vision included in Vision Care (Q1 2011 net sales of USD 473 m) Operating income 524 147 256 250  Certain Pharmaceutica

  24. Slide 24: Sandoz Division

    Sandoz Division Restated Q1 2011 Q1 2010 % change USD m USD m USD cc Net sales 2 373 2 001 19 18 Operating income 412 310 33 35 As % of net sales 17.4 15.5 Core operating income 534 450 19 21 As % of net sales 22.5 22.5  Alcon generics business Falcon transferred to Sandoz with net sales of USD 55

  25. Slide 25: Consumer Health Division

    Consumer Health Division Restated Q1 2011 Q1 2010 % change USD m USD m USD cc Net sales 1 169 1 035 13 11 Operating income 265 157 69 81 As % of net sales 22.7 15.2 Core operating income 240 173 39 41 As % of net sales 20.5 16.7  CIBA Vision transferred to new Alcon Vision Care business  Animal He

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