Slide 1: Fourth Quarter 2008 Webcast
Exhibit 99.1 Fourth Quarter 2008 Webcast February 12, 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, made on February 12, 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 an
Slide 3: Business Overview
Business Overview Cary Rayment Chairman, President & CEO
Slide 4: Long-term Opportunity
Long-term Opportunity Attractive market fundamentals – Value of vision to individuals and to society – Significant unmet medical needs – Aging demographics provide long-term foundation for growth Strong competitive position – Specialized focus in all areas of eye care – Geographic and product divers
Slide 5: 2008 Highlights
2008 Highlights Strong full-year financial performance – 12.4% reported sales growth, 8.3% organic growth* – 29.3% increase in diluted EPS Market share gains driving growth – Glaucoma – Allergy – IOLs – Phaco systems and disposables Global product approvals and launches – AcrySof® ReSTOR® +3.0 – Acr
Slide 6: Balanced Growth
Balanced Growth Organic Growth* by Product Line 12% FY 2008 Q4 2008 10% 9.2% 8% 8.7% 8.2% 7.0% 6% 6.0% 4% 4.8% 2% 0% Pharma Surgical Consumer * Organic growth is a non-GAAP measure presented to give investors a better comparison of operations between years. Reconciliations for organic growth are pro
Slide 7: 2008 Geographic Sales and Growth
2008 Geographic Sales and Growth FY 2008 Sales by Geography $1,152.0 Reported: +21.5% Constant Currency*: +18.1% Emerging Markets $2,806.4 18.3% Reported: +5.0% U.S. 44.6% Developed International 37.1% $2,335.3 Reported: +18.0% Constant Currency*: +11.3% (dollars in millions) * Constant currency sal
Slide 8: Growing Market Share in Key Categories
Growing Market Share in Key Categories November Share YTD 2008 FY 2007 Growth TRAVATAN® + TRAVATAN Z® 17.8% 15.9% +190 bps DuoTravTM 20.6% 16.6% +400 bps Azopt® 54.2% 51.4% +280 bps Vigamox® % 8.7% 7.5% +120 bps NEVANAC® 1.9% 1.3% +60 bps Patanol® + Pataday® 20.7% 18.2% +250 bps CIPRODEX® * / Cipro®
Slide 9: Evolution of 2008 Growth
Evolution of 2008 Growth Alcon Group Reported USD Growth Q1 Q2 Q3 Q4 Full Year International 25.6% 28.9% 23.8% 1.2% 19.1% United States 5.9% 7.0% 4.1% 2.8% 5.0% Alcon Group 16.2% 17.9% 14.1% 1.9% 12.4% Alcon Group Organic USD Growth* Q1 Q2 Q3 Q4 Full Year International 10.2% 13.4% 14.0% 9.3% 11.6% U
Slide 10: Growing Glaucoma Sales Faster than Competition
Growing Glaucoma Sales Faster than Competition Growth as of November 2008 YTD Alcon achieved #2 global market 20% share position in glaucoma 18.6% (U.S. dollar percent growth) 15% 13.5% 10.5% 10% 8.9% 5% 2.6% 0% Merck Pfizer Santen Allergan Alcon Source: IMS Nov 08 Monthly for top 30 countries
Slide 11: Global Growth in Cataract Products
Global Growth in Cataract Products Percent Growth in Cataract Products – FY 2008 20% +17.2% 16% Unit Growth Dollar Growth 12% +11.0% +10.1% +9.3% +8.4% +8.5% 8% Global cataract 4% 3.7% procedure growth estimate* 0% ® AcrySof IOLs Viscoelastics Custom Paks® *Source: Global procedure growth from Marke
Slide 12: Advanced Technology IOL Sales Trend
Advanced Technology IOL Sales Trend $60 $51.6 $50 $40 (dollars in millions) $30 $20 $10 $- Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 ReSTOR® ReSTOR® CMS Toric Toric CMS ReSTOR® ReSTOR® +3.0 Launch Decision Launch Decision Aspheric Launch Aspheric
Slide 13: Disinfectant Market Share Success
Disinfectant Market Share Success U.S. Equiv. Unit Market Share (including Private Label) 45 39.1% 39.4% 40 35 (shares by percentage) 30 24.9% 25 23.9% 20 15 10 5 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Source: Nielsen rolling 12-wk share Alcon B&L AMO C
Slide 14: Successful U.S. Launch of Systane ULTRA
Successful U.S. Launch of Systane® ULTRA Equiv. Unit Share Launch Comparison by 4 Week Period 5.0 Systane® ULTRA has had the most rapid launch in the OTC Dry Eye category 4.0 (equivalent unit share) 3.0 2.0 1.0 0.0 1 2 3 4 5 6 7 8 9 10 Systane ®ULTRA Systane® Original Systane® Free Source: Nielsen R
Slide 15: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer
Slide 16: Sales
Sales 4th Qtr Full Year (dollars in millions) (dollars in millions) +1.9% Reported +12.4% Reported $1,600 +7.1% Constant Currency* $6,800 +9.5% Constant Currency* +6.4% Organic Growth* +8.3% Organic Growth* $6,400 $1,500 $6,293.7 $1,497.5 $6,000 $1,469.7 $5,600 $1,400 $5,599.6 $5,200 $1,300 $4,800 Q
Slide 17: Gross Profit
Gross Profit 4th Qtr Full Year (dollars in millions) $5,200 (dollars in millions) $1,300 +8.0% $5,000 +14.8% $1,200 $4,800 $1,186.4 $4,821.4 $4,600 $1,100 $1,098.4 $4,400 $1,000 $4,200 $4,201.4 $4,000 $900 $3,800 Q4 2007 Q4 2008 FY 2007 FY 2008 % of % of 74.7% 79.2% 75.0% 76.6% Sales Sales
Slide 18: Operating Profit
Operating Profit 4th Qtr Full Year (dollars in millions) $2,400 (dollars in millions) $650 +20.0% +17.5% $600 $2,200 $2,213.1 $550 $573.1 $2,000 $500 $477.4 $1,800 $1,883.1 $450 $400 $1,600 Q4 2007 Q4 2008 FY 2007 FY 2008 % of % of 32.5% 38.3% 33.6% 35.2% Sales Sales
Slide 19: Net Earnings
Net Earnings 4th Qtr Full Year $500 (dollars in millions) $2,200 (dollars in millions) +12.5% +29.0% $450 $2,000 $2,046.5 $400 $423.6 $1,800 $376.5 $350 $1,600 $1,586.4 $300 $1,400 Q4 2007 Q4 2008 FY 2007 FY 2008 % of % of 25.6% 28.3% 28.3% 32.5% Sales Sales Diluted $1.25 $1.41 Diluted $5.25 $6.79 E
Slide 20: Investment Performance and Strategy Update
Investment Performance and Strategy Update Fourth Quarter and FY 2008 Investment Performance Investments losses totaled $83.3 million in Q4 - Includes $32.1 million of impairment charges Full-year 2008 losses of $133.8 million - Includes $36.5 million of impairment charges Modifications to Inves
Slide 21: Consistent Dividend Growth
Consistent Dividend Growth Dividend Historical Payout vs. 2009 Proposal $1,200 +36% $1,023 $1,000 46% Proposed 2009 Dividend* = + (dollars in millions) $800 R $750 C AG $613 $600 $417 $400 $302 $200 $169 $107 $0 2003 2004 2005 2006 2007 2008 2009 * Dividend proposal will be put to a shareholder vote
Slide 22: Industry-leading Margins
Industry-leading Margins 35.2% Operating Mean: 25.2% Income Margin as a % of Reported Sales Alcon Wyeth Medtronic Forest Zimmer Merck JNJ Bristol- Teva St. Jude Stryker Baxter Pfizer Allergan Abbott Meyers * * * 32.5% Net Earnings Mean: 17.4% Margin as a % of Reported Sales Alcon Forest Zimmer JNJ W
Slide 23: 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
Slide 24: Slide 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations FY (dollars in millions) FY GAAP Exchange Constant Acquisition FY Organic Growth Rate Currency Rate FULL YEAR 2008 Rate Changes Growth Changes Growth Rate Rate Global Sales 12.4% (2.9%) 9.5% (1.2%) 8.3% Pharmaceutical 10.7 (2.5) 8.2 0.0 8.2 Surgical 15.3 (3.6) 11.7 (2.5) 9.2
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Q4 (dollars in millions) Q4 GAAP Exchange Constant Acquisition Q4 Organic Growth Rate Currency Rate Q4 2008 Rate Changes Growth Changes Growth Rate Rate Global Sales 1.9% 5.2% 7.1% (0.7%) 6.4% Pharmaceutical 0.0 4.8 4.8 0.0 4.8 Surgical 3.2 5.3 8.5 (1.5) 7.0 Consumer 2.9 5.8
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Q1 (dollars in millions) Q1 GAAP Exchange Constant Acquisition Q1 Organic Growth Rate Currency Rate Q1 2008 Rate Changes Growth Changes Growth Rate Rate Global Sales 16.2% (6.8%) 9.4% (1.3%) 8.1% United States 5.9 0.0 5.9 0.0 5.9 International 25.6 (13.0) 12.6 (2.4) 10.2 Not
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Q2 (dollars in millions) Q2 GAAP Exchange Constant Acquisition Q2 Organic Growth Rate Currency Rate Q2 2008 Rate Changes Growth Changes Growth Rate Rate Global Sales 17.9% (6.7%) 11.2% (1.2%) 10.0% United States 7.0 0.0 7.0 (0.5) 6.5 International 28.9 (13.5) 15.4 (2.0) 13.4
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Q3 (dollars in millions) Q3 GAAP Exchange Constant Acquisition Q3 Organic Growth Rate Currency Rate Q3 2008 Rate Changes Growth Changes Growth Rate Rate Global Sales 14.1% (3.8%) 10.3% (1.4%) 8.9% United States 4.1 0.0 4.1 (0.5) 3.6 International 23.8 (7.6) 16.2 (2.2) 14.0 N
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Earnings Millions Diluted EPS 2007 reported $1,586.4 $ 5.25 2007 refractive impairment 20.8 0.7 2007 adjusted $1,607.2 $ 5.32 2008 reported $ 2,046.5 $ 6.79 2008 tax adjustment* (235.7) (0.79) 2008 adjusted $ 1,810.8 $ 6.00 2008 Reported Growth 29.0% 29.3% 2008 Adjusted
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations in Millions Diluted Earnings Per Share FY 2008 FY 2008 2008 Reported Net Earnings $ 2,046.5 $ 6.79 Impact of Refractive Impairment and Tax Credit 235.7 0.79 2008 Adjusted Net Earnings $ 1,810.8 $ 6.00 in Millions Q4 2008 Effective Tax Rate 2008 Reported Income Taxes $ 35.9 1