Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 11, 2022 1
Slide 2: Legal disclaimers
Legal disclaimers Forward-looking statements This document 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 stat
Slide 3: Agenda
Agenda 01 Key topics 02 IFRS results 03 Core results 04 Outlook 3
Slide 4: Key topics
Key topics Alcon
Slide 5: Q1 2022 Highlights
Q1 2022 | Highlights • Double-digit sales growth in both Surgical and Vision Care reflect product innovation, continued market recovery from COVID-19 and sales from recent acquisitions • Improved profitability across the business driven by operating leverage • Dividend of CHF 0.20 per share approved
Slide 6: Select financial highlights
Q1 2022 | Select financial highlights rd 1 1 1 3 party sales Core operating margin Core diluted EPS Free cash flow 1Q22 $2,175M 1Q22 20.6% 1Q22 $0.68 1Q22 ($52M) 1Q21 $1,910M 1Q21 18.0% 1Q21 $0.49 1Q21 $48M 1 Sales of $2.2B, up +18% cc Core operating margin 1Q22 core diluted EPS of $0.68, 1Q22 cash
Slide 7: IFRS results
IFRS results Alcon
Slide 8: IFRS results
Q1 2022 | IFRS results Worldwide net sales Operating margin Diluted EPS 11.3% $2,175M $0.34 $1,910M 7.8% $0.17 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 +14% +3.5 percentage points +$0.17 8
Slide 9: IFRS operating margin bridge
Q1 2022 | IFRS operating margin bridge 1Q22 vs. 1Q21, % of net sales 1.3 2.9 12.9 11.3 (1.6) 2.5 (1.6) 7.8 1Q21 Gross SG&A R&D Other Foreign 1Q22 Margin income/expense Exchange 9
Slide 10: Core results
Core results Alcon
Slide 11: Core results
1 Q1 2022 | Core results Worldwide net sales Core operating margin Core diluted EPS $2,175M $0.68 20.6% $1,910M 18.0% $0.49 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Includes ~100 bps from one- Includes ~100 bps from one-time Includes ~$0.04 from time South Korea benefit South Korea benefit and ~130 bps one-tim
Slide 12: Product mix
1 Q1 2022 | Product mix Vision Care $0.9B (42%) Surgical $1.3B (58%) Ocular health (39%) Implantables (36%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Glaucoma eye drops MIGS microstent Contact lens solution $2.2 billion Consumables (48%) Dedicated consumables Alcon 1
Slide 13: Surgical double-digit growth driven by implantables and consumables
Q1 2022 | Surgical double-digit growth Net Sales 1 (USD) (CC) driven by implantables and consumables (USD $M) $1,259 17% 22% • Maintaining PCIOL market leadership, strong demand for Vivity $1,077 + • One-time PCIOL benefit in South Korea: ~8% cc implantables growth • Sales of Hydrus Microstent follo
Slide 14: Vision Care double-digit growth driven by contact lenses and Systane
Q1 2022 | Vision Care double-digit growth Net Sales driven by contact lenses and Systane (USD $M) (USD) (CC)1 $916 10% 14% $833 • Strong demand for Precision1 and Total brand families of contact + lenses • Recently launched Dailies Total1 for Astigmatism in the US and Total30 monthly lens in the US
Slide 15: Core operating margin bridge
1 Q1 2022 | Core operating margin bridge 1Q22 vs. 1Q21, % of net sales 1.2 21.9 2.9 20.6 (0.5) (1.3) 18.0 0.3 1Q21 Gross Margin SG&A R&D Other Foreign 1Q22 income/expense Exchange Key drivers • Operating leverage driven by higher sales, partially offset by increased inflationary pressures • One-time
Slide 16: Cash flow & balance sheet highlights
Q1 2022 | Cash flow & balance sheet highlights Cash and cash equivalents $1 billion 1Q22 cash flows from operations $66 million 1 1Q22 free cash flow ($52) million; reflects lower cash from operating activities, driven by cash outflows from changes in net working capital, the annual bonus payment an
Slide 17: Outlook
Outlook Alcon
Slide 18: FY 2022 outlook
FY 2022 outlook 2022 outlook as of 2022 outlook as of Comments February May Net sales (USD) $8.7 to $8.9 billion $8.7 to $8.9 billion Maintain 1 CC net sales growth vs. 2021 +7% to +9% +9% to +11% Increase 1 Core operating margin 18% to 19% 18% to 19% Maintain 2 Interest expense and OFI&E $180 to $1
Slide 19: Appendix
Appendix 19 ‹#›
Slide 20: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 21: Reconciliation of IFRS results to core results (Q1 2022)
Reconciliation of IFRS results to core results Three months ended March 31, 2022 Amortization of certain intangible Transformation (1) (4) (5) (6) ($ millions except earnings per share) IFRS results assets costs Legal items Other items Core results Gross profit 1,208 140 — — 9 1,357 Selling, general
Slide 22: Reconciliation of IFRS results to core results (Q1 2021)
Reconciliation of IFRS results to core results Three months ended March 31, 2021 Amortization of certain IFRS intangible Separation Transformation Other Core (1) (2) (3) (4) (6) ($ millions except earnings per share) results assets Impairments costs costs items results Gross profit 1,031 125 45 — —
Slide 23: Explanatory footnotes to IFRS to core reconciliation tables
Reconciliation of IFRS results to core results 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) Separation costs, primarily related to IT an
Slide 24: Reconciliation of free cash flow
Reconciliation of free cash flow The following is a summary of free cash flow for the three months ended March 31, 2022 and 2021, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2022 2021 Net cash flows from operatin
Slide 25: Alcon
Alcon SEE BRILLIANTLY