Alcon Ag · SIX:ALC
Alcon — Q1 2009 Earnings Presentation
24 slides from Alcon's earnings presentation, Apr 23, 2009
Slide 1: First Quarter 2009 Webcast
Exhibit 99.1 First Quarter 2009 Webcast April 23, 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, made on April 23, 2009, 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 a
Slide 3: Business Overview
Business Overview Kevin Buehler President and Chief Executive Officer
Slide 4: Long-term Opportunity, Near-term Challenges
Long-term Opportunity, Near-term Challenges Solid financial performance – Organic sales grew 4.8% (-2.8% reported)* – Adjusted EPS rose 8.4% (5.6% reported)** Long-term growth opportunity unchanged – Attractive market fundamentals – Importance of vision for quality of life – Unmet medical needs Valu
Slide 5: Q1 2009 Geographic Sales and Growth
Q1 2009 Geographic Sales and Growth Q1 2009 Sales by Geography $263.4 Reported: - 5.0% Constant Currency*: +14.1% Emerging Markets $657.9 17.6% Reported: -2.1% U.S. 44.1% Developed International 38.3% $572.0 Reported: - 2.6% Constant Currency*: +8.4% (dollars in millions) * Constant currency sales g
Slide 6: Emerging Markets Continue Solid Growth
Emerging Markets Continue Solid Growth Top Ten Emerging Markets Sales in Emerging Markets Ranked by Sales (Full Year 2008) 1,500 % 1. Brazil 4.4 1,250 = +2 $1,152 2. Russia R C AG 3. Mexico e ar $948 4Y 1,000 4. China Dollars in millions $755 5. Poland 750 $613 6. Turkey 500 $481 18.3% of Sales 7. T
Slide 7: Solid Development of Key Products in Japanese Market
Solid Development of Key Products in Japanese Market Patanol® TRAVATANZ® Unit Market Share Growth Unit Market Share Growth +24.2 point market share gain 12.0% 30.0% over 27 months 29.3% 11.0% 10.0% 25.0% Japan Launch 22.3% of 8.0% TRAVATANZ® 20.0% 6.0% 15.0% 13.9% 10.0% 4.0% 5.0% 2.0% 0.0% 0.0% 08 0
Slide 8: TRAVATAN Family Continues Glaucoma Market Success
TRAVATAN® Family Continues Glaucoma Market Success Alcon Global Prostaglandin Market Share TRAVATAN® Family has gained 5.1 share points following DuoTravTM and TRAVATAN Z® launches 19.7% 20% 16% 14.6% 12% 8% 4% 0% Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 ® ® TM Source: IMS TRAVATA
Slide 9: Gaining Market Share in Key Categories
Gaining Market Share in Key Categories Global U.S. RX Growth December YTD February YTD Brand Market Brand Market TRAVATAN® Family 22.0% 7.3% 19.0% 1.8% Azopt® 12.5% 7.1% 7.8% 4.8% Vigamox® * 16.7% 1.0% -12.3% -10.5% NEVANAC® 61.5% 2.9% 5.4% 6.8% Patanol® + 19.0% 2.0% 0.2% -1.8% PatadayTM CIPRODEX® *
Slide 10: Allergy Market Outlook
Allergy Market Outlook Allergy franchise positioned well – Patanol® family • Continued international momentum • U.S. Patanol® /Pataday™ conversion driving share gains – Patanase® • Prescription volume building weekly • Opportunistic approach in crowded field Allergy market sensitivities – Severity a
Slide 11: U.S. Cataract Equipment Shares Continue to Rise
U.S. Cataract Equipment Shares Continue to Rise U.S. Equipment Market Shares U.S. market share has increased its leadership position 9.7 share points in 2 years 70% 68.7% 65.0% 65% 60% 59.0% 55% 50% 06 07 07 07 07 08 08 08 08 20 20 20 20 20 20 20 20 20 4 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Source: Mar
Slide 12: Global Growth in Cataract Products
Global Growth in Cataract Products Percent Growth in Cataract Products – Q1 2009 12% Unit Growth +9.6% 8% +6.9% +4.9% +4.3% 4% 0% Phaco Cassette Cataract Paks Viscoelastics AcrySof IOLs Paks Source: Company Data
Slide 13: Advanced Technology IOLs as Source of Growth
Advanced Technology IOLs as Source of Growth AcrySof® ReSTOR® Number one global PCIOL ReSTOR® +3.0 redefines the value proposition for patients Expect to regain share and increase PCIOL penetration AcrySof® ReSTOR® +3.0 AcrySof® Toric Leading toric IOL with over 95% of U.S. market IQ technology enha
Slide 14: Disinfectant Market Share Success
Disinfectant Market Share Success U.S. Equivalent Unit Branded Market Share 60 52.7% 51.8% 50 (shares by percentage) 40 30 20 10 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Alcon B&L AMO CIBA Source: Alcon’s Best Internal Estimate
Slide 15: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer
Slide 16: 1st Quarter Sales
Sales 1st Quarter Sales (dollars in millions) -2.8% Reported +4.8% Organic Growth* $1,600 $1,500 $1,536.4 $1,493.3 $1,400 $1,300 Q1 2008 Q1 2009 * Constant currency sales growth and organic sales growth are non-GAAP measures presented to give investors a better comparison of operations between years
Slide 17: Margin Evolution
Margin Evolution Gross Profit Operating Income $1,300 (dollars in millions) (dollars in millions) $700 +0.0% +2.7% $1,200 $600 $1,100 $1,138.1 $1,138.6 $500 $500.1 $513.6 $1,000 $400 $900 $300 Q1 2008 Q1 2009 Q1 2008 Q1 2009 % of % of 74.1% 76.2% 32.6% 34.4% Sales Sales
Slide 18: Net Earnings and Diluted EPS Rise
Net Earnings and Diluted EPS Rise Net Earnings Diluted EPS $600 (dollars in millions) (dollars in millions) $1.70 +5.3% +5.6% $500 $1.60 Non-GAAP adjusted* $1.55 $452.0 $400 $429.4 $1.50 $1.51 $300 $1.40 $1.43 $200 $1.30 Q1 2008 Q1 2009 Q1 2008 Q1 2009 % of 27.9% 30.3% Sales * Adjusted diluted EPS m
Slide 19: 2009 Full Year Financial Guidance
2009 Full Year Financial Guidance • Organic growth in the mid-single digits • Diluted earnings per share: U.S. GAAP EPS guidance $6.00 - $6.20 Restructuring charge (0.05) (0.05) Adjusted EPS guidance $6.05 - $6.25 Note: Adjusted diluted EPS measures the results of the company's operations without ce
Slide 20: First Quarter 2009 Webcast
First Quarter 2009 Webcast April 23, 2009
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Q1 (dollars in millions) Exchange Q1 GAAP Constant Acquisition Q1 Organic Rate 1st Quarter 2009 Growth Changes Currency Changes Growth Growth Global Sales (2.8)% (7.6)% 4.8% 0.0 4.8% Pharmaceutical (0.4) (6.4) 6.0 0.0 6.0 Surgical (3.5) (8.7) 5.2 0.0 5.2 Consumer (7.9) (8.0)
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Foreign Constant Currency March 31, Currency and Organic 2009 2008 Change Change Change (in millions) Geographic Sales Alcon United States: Pharmaceutical $ 306.7 $ 318.3 (3.6 ) % -- % (3.6 ) % Surgical 258.4 254 1.7 -- 1.7 Consumer Eye Care 92.8 99.7 (6.9
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Foreign Constant Currency March 31, Currency and Organic 2009 2008 Change Change Change (in millions) Global Product Sales Infection/inflammation $ 201.9 $ 228.1 (11.5 ) % (6.2 ) % (5.3 ) % Glaucoma 233.1 210.7 10.6 (9.2 ) 19.8 Allergy 142.9 131 9.1 (0.1 )
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Disclosures (Unaudited) (USD in millions, except per share data) Reported Restructuring Non-GAAP Adjusted Sales $ 1,493.3 $ -- $ 1,493.3 Cost of goods sold 354.7 3.1 351.6 Gross profit 1,138.6 (3.1) 1,141.7 Selling, gen