Slide 1: 1Q21 Earnings Presentation
1Q21 Earnings Presentation May 5, 2021 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 ‹#›
Slide 4: Key topics
Key topics 4
Slide 5: Key topics
Key topics • Solid sales and return to 2019 core profitability levels, driven by operating leverage and manufacturing efficiencies • Strong commercial execution behind global rollout of new product launches • R&D investments fueling exciting innovation ® • Acquisition of US commercial rights for Sim
Slide 6: 1Q21 select financial highlights
1Q21 select financial highlights Top line Profitability Core EPS Cash generation 1 1 1 Third party sales Core operating margin Core diluted EPS Free cash flow 1Q21 $1.9B 1Q21 18.0% 1Q21 $0.49 1Q21 $48M 1Q20 $1.8B 1Q20 16.6% 1Q20 $0.45 1Q20 ($60M) First quarter sales of $1.9B, up Core operating margi
Slide 7: IFRS results
IFRS results Alcon “
Slide 8: 1Q21 IFRS results
1Q21 IFRS results Worldwide net sales Operating margin EPS 7.8% $1,910M $1,822M $0.17 (1.5%) ($0.12) 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 +5% 60 bps positive impact from FX 8
Slide 9: Core results
Core results
Slide 10: 1Q21 core results
1 1Q21 core results Worldwide net sales Core operating margin Core diluted EPS 18.0% $1,910M 16.6% $1,822M $0.49 $0.45 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 +2% cc 40 bps positive impact from FX 1. Core operating margin, core EPS and constant currency growth, including FX impacts, are non-IFRS measures. An
Slide 11: Diversified portfolio across businesses and geographies
Diversified portfolio across businesses and geographies 1 Product mix Vision Care $0.8B (44%) Surgical $1.1B (56%) Ocular Health (39%) Implantables (32%) • Dry eye products • Monofocal intraocular lenses (IOLs) • Allergy eye drops • Advanced technology IOLs • Contact lens solution Consumables (50%)
Slide 12: Surgical momentum driven by equipment and implantables
Surgical momentum driven by Net Sales equipment and implantables 1 (USD) (CC) (USD $M) $1,077 9% 7% $984 + • Demand for cataract and refractive equipment and other refractive products $344 11% 9% $310 • Launch of Vivity and continued strength of PanOptix in key markets, offset by challenging + y/y c
Slide 13: Vision Care impacted by prior year stocking activity
Vision Care impacted by prior year Net Sales stocking activity (USD $M) (USD) (CC)1 • Continued growth of Precision1 and Precision1 $838 $833 (1%) (3%) for Astigmatism + • Strong demand for Pataday and recent launch of Pataday Extra Strength $502 $509 1% (1%) • Declines in international markets for
Slide 14: Core operating margin bridge
1 Core operating margin bridge 1Q21 vs 1Q20 (% of net sales) 0.4 18.0 0.7 17.6 — 0.5 (0.2) 16.6 1Q20 GM SG&A R&D Other FX 1Q21 income/expense Key drivers • GM: higher sales and manufacturing efficiencies versus the prior year • SG&A: operating leverage from higher sales; 1Q20 provisions for expected
Slide 15: Cash flow and balance sheet highlights
Cash flow and balance sheet highlights Cash and cash equivalents $1,564 million Cash flows from operations $156 million 1 Free cash flow $48 million Capex $108 million Investing in new contact lens manufacturing lines Debt $4,110 million No financial covenants 1. Free cash flow is a non-IFRS measure
Slide 16: Developing a new distribution channel for eye drops
Developing a new distribution channel for eye drops Investing in a dedicated sales force to focus on ~10,000 US eye care professionals Systane HYDRATION Multi-Dose Preservative-Free (MDPF) • Preservative-free is the fastest growing category in the artificial tears market • Alcon's first MDPF introdu
Slide 17: 2021 Outlook
2021 Outlook
Slide 18: 2021 Outlook
2021 Outlook 2019 2020 2021 outlook Net sales $7.4 billion $6.8 billion $7.8 - $8.0 billion 1 Core operating margin 17.2% 11.7% approximately 17% 1 Core diluted earnings per share 1.89 1.04 $1.85 - $1.95 Assumptions: • Continued impacts from COVID-19 during the second quarter • Markets return to his
Slide 19: Advancing the frontiers of sight
Advancing the frontiers of sight See Brilliantly 19
Slide 20: Appendix
ees ISERIES SAS oc SAS ERE SRR ORE NAN GSANASESASESENANGS
Slide 21: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 22: Reconciliation of IFRS to core results
Reconciliation of IFRS to core results Three months ended March 31, 2021 Amortization of certain IFRS intangible Separation Transformation Other Core (1) (2) (3) (4) (7) ($ millions except earnings per share) results assets Impairments costs costs items results Gross profit 1,031 125 45 — — — 1,201
Slide 23: Reconciliation of IFRS to core results
Reconciliation of IFRS to core results Three months ended March 31, 2020 Amortization of certain intangible Separation Transformation Other (1) (2) (3) (4) (7) ($ millions except (loss)/earnings per share) IFRS results assets Impairments costs costs items Core results Gross profit 872 252 16 3 — (10
Slide 24: Reconciliation of IFRS to core results
Reconciliation of IFRS to core results Twelve months ended December 31, 2020 Amortization of certain Post- IFRS intangible Separation Transformation employment Other Core (1) (2) (3) (4) (5) (7) ($ millions except (loss)/earnings per share) Results assets Impairments costs costs benefits items resul
Slide 25: Reconciliation of IFRS to core results
Reconciliation of IFRS to core results Twelve months ended December 31, 2019 Amortization of IFRS certain intangible Separation Transformation Legal (1) (3) (4) (6) (7) ($ millions except (loss)/earnings per share) results assets costs costs items Other items Core results Gross profit 3,662 1,007 10
Slide 26: Reconciliation of IFRS to core results
Reconciliation of IFRS 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 are expected to be incurred over th
Slide 27: Reconciliation of IFRS to core results
Reconciliation of IFRS to core results Explanatory footnotes to IFRS to core reconciliation tables (continued) (8) For the three months ended March 31, 2021, tax associated with operating income core adjustments of $195 million totaled $38 million with an average tax rate of 19.5%. For the three mon
Slide 28: Reconciliation of free cash flow
Reconciliation of free cash flow The following is a summary of free cash flow for the three months ended March 31, 2021 and 2020, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2021 2020 Net cash flows from operatin
Slide 29: Alcon
Alcon SEE BRILLIANTLY