Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation August 10, 2022 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 3
Slide 4: Key topics
Key topics Alcon
Slide 5: Q2 2022 | Highlights
Q2 2022 | Highlights • Strong 2Q22 sales of $2.2 billion, up 5%, or 10% 1 constant currency driven by product innovation and continued market recovery • Double-digit growth in Surgical due to market recovery and implantables • High-single digit growth in Vision Care due to market recovery and new pr
Slide 6: Q2 2022 | Select financial highlights
Q2 2022 | Select financial highlights rd 1 1 1 3 party sales Core operating margin Core diluted EPS Free cash flow 2Q22 $2,200M 2Q22 18.4% 2Q22 $0.63 1H22 $233M 2Q21 $2,094M 2Q21 18.2% 2Q21 $0.56 1H21 $320M 1 Sales of $2.2B, up 10% cc Core operating margin of 18.4%, 2Q22 core diluted EPS of $0.63, 1
Slide 7: IFRS results
IFRS results Alcon
Slide 8: Q2 2022 | IFRS results
Q2 2022 | IFRS results Worldwide net sales Operating margin Diluted EPS $2,200M $2,094M 10.9% $0.31 $0.30 9.1% 2Q21 2Q22 2Q21 2Q22 2Q21 2Q22 +5% (1.8) percentage points ($0.01) 8
Slide 9: 1H 2022 | IFRS results
1H 2022 | IFRS results Worldwide net sales Operating margin Diluted EPS $0.64 $4,375M 10.2% $4,004M 9.4% $0.48 1H21 1H22 1H21 1H22 1H21 1H22 +9% +0.8 percentage points +$0.16 9
Slide 10: Q2 2022 | IFRS operating margin bridge
Q2 2022 | IFRS operating margin bridge 2Q22 vs. 2Q21, % of net sales 11.1 0.5 10.9 0.5 1.4 9.1 (2.0) (2.2) 2Q21 Gross SG&A R&D Other income/ Foreign 2Q22 Margin expense Exchange 10
Slide 11: 1H 2022 | IFRS operating margin bridge
1H 2022 | IFRS operating margin bridge 1H22 vs. 1H21, % of net sales 0.9 12.0 2.2 (0.5) 10.2 9.4 — (1.8) 1H21 Gross SG&A R&D Other income/ Foreign 1H22 Margin expense Exchange 11
Slide 12: Core results
Core results Alcon
Slide 13: Q2 2022 | Core results
1 Q2 2022 | Core results Worldwide net sales Core operating margin Core diluted EPS 18.4% $2,200M $0.63 18.2% $0.56 $2,094M 2Q21 2Q22 2Q21 2Q22 2Q21 2Q22 +10% cc +0.2 percentage points +$0.07 +1.7 percentage points cc ~$0.06 due to ~150 bps negative FX impact favorable tax impact 1. Core operating m
Slide 14: 1H 2022 | Core results
1 1H 2022 | Core results Worldwide net sales Core operating margin Core diluted EPS $4,375M 19.5% $1.32 $4,004M 18.1% $1.05 1H21 1H22 1H21 1H22 1H21 1H22 +14% cc +1.4 percentage points +$0.27 +2.8 percentage points cc ~$0.10 due to ~140 bps negative FX impact favorable tax impact 1. Core operating m
Slide 15: 1H 2022 | Product mix
1 1H 2022 | Product mix Vision Care $1.8B (42%) Surgical $2.6B (58%) Ocular health (39%) Implantables (35%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Glaucoma eye drops Glaucoma implants Contact lens care $4.4 billion Consumables (49%) Dedicated consumables Alcon 1H2
Slide 16: Q2 2022 | Surgical growth driven by international markets and ATIOLs
Q2 2022 | Surgical growth driven by Net Sales 1 (USD) (CC) improvements across international (USD $M) markets and ATIOLs $1,206 $1,296 7% 13% • Maintaining PCIOL market leadership, strong demand for Vivity + • Sales of Hydrus Microstent following recent acquisition of Ivantis • Continuing recovery i
Slide 17: Q2 2022 | Vision Care growth driven by international markets and SiHy
Q2 2022 | Vision Care growth driven by Net Sales improvements across international (USD $M) (USD) (CC)1 markets and SiHy contact lenses $888 $904 2% 7% • Strong demand for Precision1 and Precision1 for Astigmatism + • Total brand family: Dailies Total1 for Astigmatism and Total30 continue to gain tr
Slide 18: Q2 2022 | Core operating margin bridge
1 Q2 2022 | Core operating margin bridge 2Q22 vs. 2Q21, % of net sales 0.2 19.9 0.6 1.1 18.4 18.2 (1.5) (0.2) 2Q21 Gross Margin SG&A R&D Other income/ Foreign 2Q22 expense Exchange Key drivers • Improved operating leverage driven by higher sales, partially offset by increased inflationary pressures
Slide 19: 1H 2022 | Core operating margin bridge
1 1H 2022 | Core operating margin bridge 1H22 vs. 1H21, % of net sales 0.9 20.9 2.0 (0.1) 19.5 (1.4) 18.1 — 1H21 Gross Margin SG&A R&D Other income/ Foreign 1H22 expense Exchange Key drivers • Improved operating leverage driven by higher sales, partially offset by increased inflationary pressures •
Slide 20: 1H 2022 | Cash flow & balance sheet highlights
1H 2022 | Cash flow & balance sheet highlights Cash and cash equivalents $1 billion 1H22 cash flows from operations $470 million 1 1H22 free cash flow $233 million Paid $100M in cash dividends during the quarter Closed acquisition of Ivantis for $479 million Capex $237 million Investing in new conta
Slide 21: Outlook
Outlook Alcon
Slide 22: FY 2022 | Outlook
FY 2022 | Outlook Comments vs. May Outlook as of February Outlook as of May Outlook as of August outlook Net sales (USD) $8.7 to $8.9 billion $8.7 to $8.9 billion $8.6 to $8.8 billion Decrease CC net sales growth 1 +7% to +9% +9% to +11% +9% to +11% Maintain vs. 2021 1 Core operating margin 18% to 1
Slide 23: Appendix
Appendix 23 ‹#›
Slide 24: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 25: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended June 30, 2022 Amortization of IFRS certain intangible Transformation Other Core (1) (2) (4) (6) ($ millions except earnings per share) results assets Impairments costs items results Gross profit 1,204 141 59 — (12) 1,392 Selling, gene
Slide 26: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended June 30, 2021 Amortization of IFRS certain intangible Separation Transformation Other Core (1) (3) (4) (6) ($ millions except earnings per share) results assets costs costs items results Gross profit 1,220 128 — — — 1,348 Selling, gen
Slide 27: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Six months ended June 30, 2022 Amortization of certain intangible Transformation Legal Core (1) (2) (4) (5) (6) ($ millions except earnings per share) IFRS results assets Impairments costs items Other items results Gross profit 2,412 281 59 — — (3) 2,74
Slide 28: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Six months ended June 30, 2021 Amortization of certain IFRS intangible Separation Transformation Other Core (1) (2) (3) (4) (6) ($ millions except earnings per share) results assets Impairments costs costs items results Gross profit 2,251 253 45 — — — 2
Slide 29: Reconciliation of IFRS results to core results
Reconciliation of IFRS results 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, primarily related to IT an
Slide 30: Reconciliation of free cash flow
Reconciliation of free cash flow The following is a summary of free cash flow for the six months ended June 30, 2022 and 2021, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2022 2021 Net cash flows from operating a
Slide 31: Alcon
Alcon SEE BRILLIANTLY