Slide 1: Third Quarter 2007 Webcast
Exhibit 99.1 Third Quarter 2007 Webcast October 25, 2007
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. This presentation is being made on October 25, 2007, and Alcon does not undert
Slide 3: Management Presentation by
Management Presentation by Cary Rayment Chairman, President & CEO Rick Croarkin Senior Vice President, Finance and Chief Financial Officer 3
Slide 4: Business Overview
Business Overview Cary Rayment Chairman, President & CEO 4
Slide 5: Q3 2007 Financial Highlights
Q3 2007 Financial Highlights Q3 07 Q3 06 Growth (dollars in millions, except per share amounts) Global Sales $ 1,335.7 $ 1,203.8 11.0% Constant 7.9% Currency** Net Earnings Reported $ 415.3 $ 232.1 78.9% Adjusted* $ 418.7 $ 324.1 29.2% Diluted EPS Reported 1.38 0.76 Adjusted* 1.39 1.06 * Non-GAAP me
Slide 6: Q3 YTD 2007 Financial Highlights
Q3 YTD 2007 Financial Highlights YTD 07 YTD 06 Growth (dollars in millions, except per share amounts) Global Sales $ 4,129.9 $ 3,671.7 12.5% Constant 9.9% Currency** Net Earnings Reported $ 1,209.9 $ 993.4 21.8% Adjusted* $ 1,234.1 $ 987.9 24.9% Diluted EPS Reported 4.00 3.21 Adjusted* 4.08 3.19 * N
Slide 7: Q3 YTD 2007 Geographic Sales and Growth
Q3 YTD 2007 Geographic Sales and Growth Q3 YTD 2007 Sales by Geography $639.1 +19.7% Emerging Markets $2,025.3 15.5% +7.4% U.S. 49.0% Developed International 35.5% $1,465.5 +17.0% (dollars in millions) 7
Slide 8: Key Brand Development: August 2007 YTD U.S. Rx Growth
Key Brand Development August 2007 YTD U.S. Rx Growth Brand Rx Market Growth % Growth % Travatan® + Travatan®ZTM 24% 9% Azopt® 15% 7% Vigamox® 11% 7% Nevanac® 23% 23% Patanol® + PatadayTM 5% 0% TobraDex® 2% 4% Ciprodex® 6% (4%) Source: WK Health 8
Slide 9: Pharmaceutical Sales
Pharmaceutical Sales Reported Constant 2007 2006 Growth Currency Q3 $ 547.3 $ 496.7 10.2% 7.5% YTD $ 1,735.6 $ 1,531.3 13.3% 11.1% • Glaucoma sales growth of 19.0% in Q3 supported by: – US market share gain with Travatan®ZTM – Continued international market share gain of Travatan® and DuoTravTM – St
Slide 10: Surgical Sales
Surgical Sales Reported Constant 2007 2006 Growth Currency Q3 $ 585.9 $ 528.7 10.8% 7.5% YTD $ 1,799.0 $ 1,621.3 11.0% 8.1% • IOLs grew 12.3% in Q3 due to global growth in AcrySof® IQ and 35.1% growth in premium lenses • Infiniti® unit sales grew 16.4% in Q3 due to surgeon acceptance of Ozil® perfor
Slide 11: Global Growth in Cataract Products
Global Growth in Cataract Products Percent Growth in Cataract Products – Sept YTD 18% +16.7% Unit Growth Dollar Growth 16% 14% +13.1% +11.9% 12% 10% +9.2% +8.8% +9.2% +9.6% +9.4% 8% 6% 4% 2% 0% AcrySof® IOLs Viscoelastics Phaco Disposables Equipment 11
Slide 12: Consumer Sales
Consumer Sales Reported Constant 2007 2006 Growth Currency Q3 $ 202.5 $ 178.4 13.5% 10.4% YTD $ 595.3 $ 519.1 14.7% 12.3% • CLC growth from market share gain in U.S. following competitor recall • U.S. share up 7.0 points vs Q3 06, according to Nielsen • OPTI-FREE® RepleniSH® brand expansion into int
Slide 13: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer 13
Slide 14: Q3 2007 Reported Income Statement Detail
Q3 2007 Reported Income Statement Detail Reported % of Reported % of Q3 07 Sales Q3 06 Sales Gross Profit $ 1,011.1 75.7% $ 902.4 75.0% SG & A 403.8 30.2% 361.1 30.0% R&D 130.9 9.8% 134.0 11.1% Intangible Amortization 10.3 0.8% 146.3 12.2% Operating Income 466.1 34.9% 261.0 21.7% Other Income 7.0 0.
Slide 15: Adjusted Q3 2007 Income Statement Detail
Adjusted Q3 2007 Income Statement Detail Adjusted % of Adjusted % of Q3 07* Sales Q3 06** Sales Gross Profit $ 1,014.3 75.9% $ 921.5 76.5% SG & A 403.8 30.2% 361.1 30.0% R&D 128.8 9.6% 134.0 11.1% Intangible Amortization 10.3 0.8% 20.6 1.7% Operating Income 471.4 35.3% 405.8 33.7% Other Income 7.0 0
Slide 16: Q3 YTD 2007 Reported Income Statement Detail
Q3 YTD 2007 Reported Income Statement Detail Reported % of Reported % of Q3 YTD 07 Sales Q3 YTD 06 Sales Gross Profit $ 3,103.0 75.1% $ 2,756.8 75.1% SG & A 1,252.4 30.3% 1,012.6 27.6% R&D 404.3 9.8% 377.6 10.3% Intangible Amortization 40.6 1.0% 187.4 5.1% Operating Income 1,405.7 34.0% 1,179.2 32.1
Slide 17: Adjusted Q3 YTD 2007 Income Statement Detail
Adjusted Q3 YTD 2007 Income Statement Detail Adjusted % of Adjusted % of Q3 YTD 07* Sales Q3 YTD 06** Sales Gross Profit $ 3,130.2 75.8% $ 2,775.9 75.6% SG & A 1,252.4 30.3% 1,131.6 30.8% R&D 402.2 9.7% 377.6 10.3% Intangible Amortization 31.9 0.8% 61.7 1.7% Operating Income 1,443.7 35.0% 1,205.0 32
Slide 18: Reported Tax Rate vs. "Base" Rate
Reported Tax Rate vs. “Base” Rate Q3 YTD 07 FY 2006 FY 2005 “Base” Effective Tax Rate* 18.0% 21.0% 25.1% Total Net Impact of (1.5)% (4.4)% (2.5)% “Non-structural” Items Reported Effective Tax Rate 16.5% 16.6% 22.6% * “Base” effective tax rate is a non-GAAP measure presented to give investors a bette
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights 9/31/07 12/31/06 Short and Long Term Borrowings $ 850.8 $ 981.3 Cash and Cash Equivalents $ 826.9 $ 1,489.2 Short term investments $ 798.9 $ 321.0 Consolidated S/H Equity $ 3,047.2 $ 2,913.6 A/R Change (From 12/31/06) 14.2% N/A Inventory Change (From 12/31/06) 12.9% N/A (dol
Slide 20: Net Dollars to Shareholders
Net Dollars to Shareholders $1,600 Share Repurchases $1,489 $1,400 Dividends $1,316 $1,200 (dollars in millions) $876 $1,000 $899 $800 $694 $600 $392 $406 $400 $236 $613 $200 $141 $417 $302 $34 $170 $107 $0 2003 2004 2005 2006 YTD 2007 Dividend 23.0% 28.5% 34.6% 44.8% 45.5% Payout Ratio* Remaining s
Slide 21: 2007 Full Year Financial Guidance
2007 Full Year Financial Guidance • Sales range from $5,510 to $5,540 million • Adjusted EPS* range from $5.30 to $5.35 • Excludes charges associated with: – The impairment of the company’s refractive asset – Acquisition of WaveLight AG and rationalization expenses of the combined refractive operati
Slide 22: Alcon
Alcon
Slide 23: Q3 2007 Non-GAAP Adjustments
Q3 2007 Non-GAAP Adjustments Non-GAAP Adjustment (dollars in millions, except per share amounts) Refractive Workforce Non-GAAP Reported Reduction Adjusted* Sales $ 1,335.7 $ -- $ 1,335.7 Cost of goods sold 324.6 (3.2) 321.4 Gross profit 1,011.1 3.2 1,014.3 Selling, general and administrative 403.8 -
Slide 24: Q3 YTD 2007 Non-GAAP Adjustments
Q3 YTD 2007 Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Refractive Impairment Workforce Non-GAAP Reported Charges Reduction Adjusted* Sales $ 4,129.9 $ -- $ -- $ 4,129.9 Cost of goods sold 1,026.9 (24.0) (3.2) 999.7 Gross profit 3,103.0 24.0 3.2 3,130.2 S
Slide 25: Q3 2006 Non-GAAP Adjustments
Q3 2006 Non-GAAP Adjustments Non-GAAP Adjustment (dollars in millions, except per share amounts) Impairment Non-GAAP Reported Charges Adjusted* Sales $ 1,203.8 $ -- $ 1,203.8 Cost of goods sold 301.4 (19.1) 282.3 Gross profit 902.4 19.1 921.5 Selling, general and administrative 361.1 -- 361.1 Resear
Slide 26: Q3 YTD 2006 Non-GAAP Adjustments
Q3 YTD 2006 Non-GAAP Adjustments Non-GAAP Adjustment (dollars in millions, except per share amounts) Patent Lawsuits Impairment Non-GAAP Reported Settlement Charges Adjusted* Sales $ 3,671.7 $ -- $ -- $ 3,671.7 Cost of goods sold 914.9 -- (19.1) 895.8 Gross profit 2,756.8 -- 19.1 2,775.9 Selling, ge