Slide 1: 2003 First Quarter Earnings
2003 First Quarter Earnings Tim Sear Chairman, President & CEO Jacqualyn Fouse Senior Vice President, Finance & CFO April 23, 2003
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained in this presentation that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Alcon does not undertake any obligation to update any of the forward looking s
Slide 3: Financial Results
Financial Results
Slide 4: First Quarter Income Statement Highlights
First Quarter Income Statement Highlights Q1 03 Q1 02 Growth Global Sales $ 807.1 $ 706.5 14.2% Operating Income $ 194.4 $ 151.6 28.2% Net Earnings $ 130.2 $ 94.0 38.5% Diluted EPS $ 0.42 $ 0.33 27.3% (dollars in millions, except per share amounts)
Slide 5: First Quarter Income Statement Details
First Quarter Income Statement Details % of % of Q1 03 Sales Q1 02 Sales Gross Profit $ 553.8 68.6% $ 496.1 70.2% SG&A $ 264.2 32.7% $ 252.4 35.7% Research & Development $ 78.2 9.7% $ 75.3 10.7% Interest Expense, Net $ 7.2 0.9% $ 12.5 1.8% Effective Tax Rate 30.4% N/A 33.0%* N/A * 2002 Full Year Eff
Slide 6: Gross Profit Margin
Gross Profit Margin + US margins improved with a product mix that included more pharmaceutical products - Geographic mix includes more non-US sales - Start-up costs for LADARWave andTM Infiniti TM
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights 3/31/03 12/31/02 Net Debt $797.6 $908.8 Consolidated S/H Equity $1,132.5 $974.3 Net Debt-to-Total Capital Ratio 41.3% 48.3% A/R Change +13.1% N/A Inventory Change -0.3% N/A (dollars in millions)
Slide 8: Product Line Performance
Product Line Performance
Slide 9: Product Line Sales - Global
Product Line Sales - Global Q1 2003 Sales Q1 2002 Sales 35.1% 37.5% 17.1% 15.8% 47.8% 46.7% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer
Slide 10: Sales – U.S. vs. Non-U.S.
Sales – U.S. vs. Non-U.S. Q1 2003 Q1 2002 Non-U.S. Non-U.S. 47.2% 45.3% U.S. U.S. 52.8% 54.7% Growth U.S. +10.4% Non-U.S. +18.9% (+10.6% in constant currency)
Slide 11: Pharmaceutical Sales
Pharmaceutical Sales Q1 03 Q1 02 Growth 350 +21.9% TobraDex® 52.3 45.1 300 302.6 16.0% 248.3 250 Patanol® 50.6 42.4 19.3% 200 150 Ciloxan® 34.8 27.4 27.0% 100 TRAVATAN® 29.6 11.6 155.2% 50 0 CiproHC* 19.1 13.2 44.7% Q1 2003 Q1 2002 *”Cipro” is a registered trademark of and licensed from Bayer A.G. (
Slide 12: Surgical Sales
Surgical Sales Q1 03 Q1 02 Growth 450 +11.7% IOLs 117.6 101.6 400 376.9 15.7% 350 337.4 Cataract/ 300 240.8 216.0 11.5% Vitrectomy 250 200 Refractive Products 18.5 19.8 -6.6% 150 100 50 0 Q1 2003 Q1 2002 (dollars in millions)
Slide 13: Consumer Eye Care Sales
Consumer Eye Care Sales 160 Q1 03 Q1 02 Growth +5.6% 127.6 120.8 OptiFree 63.3 65.2 -2.9% 120 Artificial 28.4 24.2 17.4% 80 Tears 40 0 Q1 2003 Q1 2002 (dollars in millions)
Slide 14: 2003 Outlook
2003 Outlook
Slide 15: 2003 Major Product Launches
2003 Major Product Launches Q1 Q2 Q3 Q4 Systane™ Tears (Feb.) OFX “Lasting Comfort” (Jan.) CustomCornea® (Jan.) Vigamox™ Infiniti™ Vision System AcrySof® Natural Patanol® Once-a-day CiproDex* Otic *”Cipro” is a registered trademark of and licensed from Bayer A.G. • Launched • Projected
Slide 16: 2003 Financial Guidance
2003 Financial Guidance • Sales expected to be at the high end of previous guidance, i.e. $3.3 billion • EPS range from $1.82 to $1.85, confirming prior guidance • Q2 marketing spend expected to be somewhat higher than normal due to new product launches and television advertising campaign
Slide 17: Slide 17