Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation August 16, 2023 1
Slide 2: Safe harbor
Safe harbor 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 statements
Slide 3: Agenda
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 3
Slide 4: Agenda: Key topics
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 4
Slide 5: Q2 2023 Highlights
Q2 2023 Highlights 1 • Sales of $2.4B, up 9%, or 12% cc ; growth driven by continued strength in demand, solid commercial execution, acquired products and price increases • Operating margin of 11.2%; core operating 1 margin of 19.9% 1 • Diluted EPS of $0.34, up 13%, or up 34% cc ; 1 core diluted EPS
Slide 6: Q2 2023 Select financial highlights
Q2 2023 Select financial highlights rd 1 1 1 3 party sales Core operating margin Core diluted EPS Free cash flow 2Q23 $2.4B 2Q23 19.9% 2Q23 $0.69 1H23 $189M 2Q22 $2.2B 2Q22 18.4% 2Q22 $0.63 1H22 $233M 1 Sales of $2.4B, up 9%, or 12% cc Operating margin of 11.2%, up Diluted EPS of $0.34, up 13%, or C
Slide 7: Agenda: IFRS results
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 7
Slide 8: Q2 2023 IFRS results
Q2 2023 IFRS results Worldwide net sales Operating margin Diluted EPS 11.2% $0.34 $2.4B $2.2B 9.1% $0.30 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Y/Y change (USD): +9% +210 bps +13% 8
Slide 9: H1 2023 IFRS results
H1 2023 IFRS results Worldwide net sales Operating margin Diluted EPS $4.7B 11.4% $4.4B $0.69 10.2% $0.64 1H22 1H23 1H22 1H23 1H22 1H23 Y/Y change (USD): +8% +120 bps +8% 9
Slide 10: Q2 2023 IFRS operating margin bridge
Q2 2023 IFRS operating margin bridge 2Q23 vs. 2Q22, % of net sales 2.3 (0.6) 12.6 2.7 (0.9) 11.2 (1.4) 9.1 2Q22 Gross SG&A R&D Other income/ Foreign 2Q23 Margin expense Exchange 10
Slide 11: H1 2023 IFRS operating margin bridge
H1 2023 IFRS operating margin bridge 1H23 vs. 1H22, % of net sales 1.6 12.8 2.0 (0.7) (0.3) 11.4 (1.4) 10.2 1H22 Gross SG&A R&D Other income/ Foreign 1H23 Margin expense Exchange 11
Slide 12: Agenda: Sales
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 12
Slide 13: H1 2023 Product mix
1 H1 2023 Product mix Vision Care $2.0B (43%) Surgical $2.7B (57%) Ocular health (41%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Steroid eye drops Glaucoma implants Glaucoma eye drops $4.7 billion Contact lens care Consumables (51%) Dedicated consu
Slide 14: Q2 2023 Surgical
Q2 2023 Surgical Net Sales 1 (USD) (CC) Surgical growth driven by strong consumables (USD $M) and equipment sales $1,296 $1,382 7% 10% $437 • Consumables reflects favorable market conditions across geographies $444 (2%) 2% + and price increases; 4 percentage points contribution from China • Equipmen
Slide 15: Q2 2023 Vision Care
Q2 2023 Vision Care Net Sales Double-digit Vision Care growth reflects strength in (USD $M) (USD) (CC)1 contact lenses and eye drops, as well as $904 $1,020 13% 15% contribution from acquired products • Solid contact lens market growth + • ALC above-market growth, particularly in US, with silicone h
Slide 16: Agenda: Core results
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 16
Slide 17: Q2 2023 Core results
1 Q2 2023 Core results Worldwide net sales Core operating margin Core diluted EPS $2.4B 19.9% $0.69 18.4% $2.2B $0.63 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Y/Y change (cc): +12% +270 bps +19% 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measure
Slide 18: H1 2023 Core results
1 H1 2023 Core results Worldwide net sales Core operating margin Core diluted EPS $1.39 $4.7B 20.3% 19.5% $1.32 $4.4B 1H22 1H23 1H22 1H23 1H22 1H23 Y/Y change (cc): +11% +200 bps +16% 18 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS meas
Slide 19: Q2 2023 Core operating margin bridge
1 Q2 2023 Core operating margin bridge 2Q23 vs. 2Q22, % of net sales 2.5 21.1 (0.7) (0.2) 19.9 1.1 (1.2) 18.4 2Q22 Gross Margin SG&A R&D Other income/ Foreign 2Q23 expense Exchange Key drivers • Improved underlying operating leverage from higher sales and manufacturing efficiencies, partially offset
Slide 20: H1 2023 Core operating margin bridge
1 H1 2023 Core operating margin bridge 1H23 vs. 1H22, % of net sales 1.5 21.5 1.4 (0.8) (0.1) 20.3 19.5 (1.2) 1H22 Gross Margin SG&A R&D Other income/ Foreign 1H23 expense Exchange Key drivers • Improved underlying operating leverage from higher sales and manufacturing efficiencies, partially offset
Slide 21: H1 2023 Cash flow and balance sheet highlights
H1 2023 Cash flow and balance sheet highlights Cash and cash equivalents $661 million 1H23 cash flows from operations $410 million 1 1H23 free cash flow $189 million Capex $221 million Investments in new contact lens manufacturing capacity Debt $4.7 billion No financial covenants 21 1. Free cash flo
Slide 22: Agenda: Outlook
Agenda 01 Key topics 02 IFRS results 03 Sales 04 Core results 05 Outlook 22
Slide 23: FY 2023 Outlook
FY 2023 Outlook as of as of as of Comments vs. 2023 outlook February May August May Trending toward Net sales (USD) $9.2 to $9.4 billion $9.2 to $9.4 billion $9.3 to $9.5 billion high end of range 1 Change vs. prior year (cc) +6% to +8% +7% to +9% +9% to +11% Increase (non-IFRS measure) 1 Core opera
Slide 24: Appendix
Appendix 24
Slide 25: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 26: Reconciliation of IFRS results to core results (Q2 2023)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended June 30, 2023 Core Amortization of results IFRS certain intangible Transformation Other (non-IFRS (1) (3) (5) ($ millions except earnings per share) results assets costs items measure) Gross profit 1,363 164 — 5 1,5
Slide 27: Reconciliation of IFRS results to core results (Q2 2022)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended June 30, 2022 Amortization of Core certain results IFRS intangible Transformation Other (non-IFRS (1) (2) (3) (5) ($ millions except earnings per share) results assets Impairments costs items measure) Gross profit 1
Slide 28: Reconciliation of IFRS results to core results (H1 2023)
Reconciliation of IFRS results to core results (non-IFRS measure) Six months ended June 30, 2023 Core Amortization of results certain intangible Transformation (non-IFRS (1) (3) (5) ($ millions except earnings per share) IFRS results assets costs Other items measure) Gross profit 2,668 333 — 9 3,010
Slide 29: Reconciliation of IFRS results to core results (H1 2022)
Reconciliation of IFRS results to core results (non-IFRS measure) Six months ended June 30, 2022 Amortization Core of certain Transfor- results IFRS intangible mation Legal Other (non-IFRS (1) (2) (3) (4) (5) ($ millions except earnings per share) results assets Impairments costs items items measure
Slide 30: Explanatory footnotes to IFRS to core reconciliation tables
Reconciliation of IFRS results to core results (non-IFRS measure) 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) Transformation costs, pri
Slide 31: Reconciliation of free cash flow (non-IFRS measure)
Reconciliation of free cash flow (non-IFRS measure) The following is a summary of free cash flow for the six months ended June 30, 2023 and 2022, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2023 2022 Net cash flo
Slide 32: Alcon
Alcon SEE BRILLIANTLY