Slide 1: Seeing Beyond Today
Exhibit 99.1 Seeing Beyond Today
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 August 10, 2006, and Alcon does not underta
Slide 3: Worldwide Leader in Eye Care
Worldwide Leader in Eye Care Sales $4.4 billion in 2005 Scope 12,700 total employees 2,800 person sales force 75 local operating companies 60 physician training centers Share #1 or #2 position in main segments #1 share in most product categories Science $2.5 billion planned R&D investment over next
Slide 4: Long-Term Financial Execution
Long-Term Financial Execution Revenue Net Income $5,000 $1,200 % 11 .3% 28.0 G R= 10.6% = 1,139 -05 C A ncy = GR $4,000 2000 ur re 4,369 $1,000 CA 39.9% nt C - 05 s t a 00 Con 3,914 11.6% $800 20 $3,000 3,407 14.9% 814 3,009 13.2% 36.7% 2,748 $600 9.5% 595 $2,000 7.6% 489 21.8% $400 362 35.0% $1,000
Slide 5: Continued Growth Q2 YTD
Continued Growth Q2 YTD $3,000 +10.1% 2005 2006 $2,500 $2,467.9 $2,000 $2,242.5 $1,500 $1,000 +21.4% $500 $697.4 $574.5 $0 Revenue Net Income* * Non-GAAP adjusted Net Income – See appendix for reconciliation
Slide 6: Delivering Financial Leverage
Delivering Financial Leverage COGS as % of Sales SG&A as % of Sales R&D as % of Sales Effective Tax Rate 40% 36.0% 35% 33.7% 32.7% 34.7% 31.2% 31.6% 30.9% 30.6% 30.0% 30% 27.7% 29.1% 29.7% 29.5% 27.6% 24.6% 24.6% 25% 20% 21.6% 19.4% 15% 10.5% 10.8% 10.3% 10.0% 9.7% 9.3% 10% 5% 0% 2001* 2002* 2003 20
Slide 7: Enhancing Leadership Through Research
Enhancing Leadership Through Research 500 450 422 390 $ Millions Per Year 400 350 350 323 290 300 246 250 213 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 7
Slide 8: Alcon R&D Strategic Principles
Alcon R&D Strategic Principles Consumer 7% • Develop new products differentiated from our competitors through innovation Pharma Surgical • Invest appropriate to market 60% 33% opportunity • Blend internal research with external licensing and partnering • Pharmaceutical 15 – 17% of Sales • Surgical 8
Slide 9: Expanding Research Collaborations
Expanding Research Collaborations Glaucoma Retina Allergy/Dry Eye Abbott Albany Molecular Amgen Dharmacon Jerini AG Kalypsys Origenis AG 9
Slide 10: Arxxant Partnering Creates Opportunity
ArxxantTM Partnering Creates Opportunity • Treats nonproliferative diabetic retinopathy – Leading cause of blindness among working-age adults in the U.S. – 10.2 mio in U.S. with diabetes, 4.1 mio with diabetic retinopathy – 0.9 mio in U.S. with vision-threatening diabetic retinopathy – Occurs when s
Slide 11: 2006 Launches Adding to Growth
2006 Launches Adding to Growth DuoTravTM Systane® Liquid Gel (EU) (US) OPTI-FREE® RepleniSH® LADAR6000TM (US) (US) AcrySert® OZilTM (JP) (US/EU) AcrySof® Natural VegamoxTM (JP) Pending (JP) AcrySof® Toric (US) Patanol® (JP)
Slide 12: New Technologies Support Market Share and Gains
New Technologies Support Market Share and Gains U.S. Unit Market Shares 100 75 2003 50 2004 64.1 2005 54.0 55.2 25 50.6 58.1 64.4 48.6 53.6 64.6 0 IOL's Viscos Cat Paks SOURCE: Alcon Market Research
Slide 13: Cataract Share Leader in Hospitals and ASCs
Cataract Share Leader in Hospitals and ASCs 80% --ASC IOL Shares (1Q06)-- 70% 60% 50% Alcon AMO 40% B&L 30% Other 20% 10% 0% Total Market Hospital ASC SOURCE: Market Scope Annual Cataract Surgeon Report (June 2006)
Slide 14: Infiniti is Upgrading and Converting Surgeons
Infiniti® is Upgrading and Converting Surgeons Planning to Acquire New Phaco in the Next 12 Months 100% (% of US surgeons) Primary System Consideration (% of of US surgeons) 75% 64% YES 23% 50% 25% 0% Millennium Infiniti Other Compact Alcon Sovereign and Lomb Bausch AMO AMO SOURCE: Market Scope: Ann
Slide 15: OZil Torsional Technology Differentiates Infiniti
OZil™ Torsional Technology Differentiates Infiniti® Performance Ratings (Scale 1-10) (% of US surgeons indicating 9 or 10) • The OZil™ torsional hand Improve 71% piece is a leap in lens Patient removal technology Outcomes • OZil™ is a proprietary, 79% Increase patented technology which Surgical Effi
Slide 16: NTIOL Status is Increasing Use of Aspheric IOLs
NTIOL Status is Increasing Use of Aspheric IOLs Penetration of Aspheric Monofocal IOLs (% of procedures) 100% 33% 75% 49% 50% 25% 0% Q4 2005 Q1 2006 SOURCE: Market Scope Annual Cataract Surgeon All Other IOLs Aspheric Mono-Focal IOLs Survey Report (June 2006)
Slide 17: Alcon Gained Aspheric Share in First Quarter
Alcon Gained Aspheric Share in First Quarter Aspheric IOL Use by Manufacturer (% of procedures) 100% 5% 11% 17% 75% 19% 50% 78% 70% 25% 0% Q4 2005 Q1 2006 SOURCE: Market Scope Annual Cataract Surgeon Alcon AMO B&L Survey Report (June 2006)
Slide 18: More Surgeons Use ReSTOR than Any Other Brand of PC-IOL
More Surgeons Use ReSTOR than Any Other Brand of PC-IOL % of Surgeons Using PC-IOLs by Brand ReSTOR 91% ReZoom 35% CrystaLens 27% SOURCE: Market Scope 0% 20% 40% 60% 80% 100% Annual Cataract Surgeon Report (June 2006)
Slide 19: Vast Majority of Physicians Implant ReSTOR Bilaterally
Vast Majority of Physicians Implant ReSTOR® Bilaterally % of Physicians Using Mix & Match by Brand 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ReSTOR ReZoom CrystaLens % of Surgeons Using 91% 35% 27% Mix & Match Bilateral SOURCE: Market Scope Annual Cataract Surgeon Report (June 2006)
Slide 20: Near Term Challenges to Adoption and Penetration
Near Term Challenges to Adoption and Penetration • Predominantly cataract U.S. Surgeon Segmentation surgeons unlikely to embrace LVC for PC-IOLs 1,500 • Predominantly Cataract surgeons will move into this 1,500 market when the presbyopia 5,500 correcting IOL can help them manage astigmatism and othe
Slide 21: Presbyopia Correcting IOL Market Remains Flat
Presbyopia Correcting IOL Market Remains Flat Surgeon Self Reported Usage Share (% of procedures) • Relatively few predominantly 100% cataract surgeons have integrated PC-IOLs into their cataract practices 75% – Clinical management of patient – Willingness and ability to modify practice – Comfort wi
Slide 22: AcrySof Toric Opportunity Has Significant Potential
AcrySof® Toric Opportunity Has Significant Potential Surgeons Using Toric Lenses Expected IOL Brand Preference 100 9% 75 65% 50 91% 25 13% Acrysof Toric Staar Toric 0 Current Use Future Use SOURCE: Alcon Market Research
Slide 23: EURMEA Glaucoma Market
EURMEA Glaucoma Market $US 1.27 Billion A lp ha A g o nist s 6% Ot her Market in 2005 T C A IS 7% 11% N o n- PG C o mb o s B et a B lo cker s 8% 3 7% PG C o mb o s 2003-2010E CAGR 4% Total Glaucoma 3.9% Prostaglandins 7.2% Pr o st ag land i ns 2 7% Prostaglandin 22.2% Combos (Source: Internal estima
Slide 24: Patanol in Japan
Patanol® in Japan US$ 200 million Market Multi- action 14% • January to March – Mountain Cedar • Anti-histamine, Livostin (Santen) is Anti- Mast Cell current market leader with 25% share histamine Stabilizers • Mast Cell Stabilizers led by Intal 25% 61% (Astellas) & Rizaben (Kissei) • Zaditen (Novar
Slide 25: Vegamox in Japan
VegamoxTM in Japan • Large and developed market – Approximately US$ 200 million – Extended course of therapy post-surgery - up to 6 months – 80% converted to fluoroquinolones – Lead products by Japanese firms dominate market • Santen (Cravit & Taravid) • Senju (Gatiflo) – Flat to declining growth du
Slide 26: Future Opportunity
Future Opportunity U.S. Pipeline Pharmaceutical Travatan® BAC Free Glaucoma Filed (2006) RETAANE® Wet AMD Amending (2008+) 15(S) HETE Dry Eye Phase III (2008+) Rimexolone Dry Eye Phase II (2008+) Moxifloxacin/Dexamethasone Anti-infective/anti-inflammatory Phase II (2008+) Moxifloxacin, new formulati
Slide 27: Sustaining Eye Care Market Leadership
Sustaining Eye Care Market Leadership • Maintain business focus on eye care • Capitalize on global infrastructure to gain operating synergies and expand presence in emerging markets • Deliver strong and consistent financial performance • Build core brands on global basis • Increase R&D investment in
Slide 28: Appendix: Non-GAAP Adjustments
Appendix: Non-GAAP Adjustments Non-GAAP Reported Adjustment Adjusted 2002 Operating Profit 703.7 42.5 746.2 Op Profit Growth 19.5% 26.7% Expense for employee deferred Net Income 466.9 21.8 488.7 comp, SKBM recall, and IPO Net Income Growth 47.9% 35.1% proceeds effect in interest expense Fully Dilute
Slide 29: Appendix: Non-GAAP Adjustments
Appendix: Non-GAAP Adjustments Non-GAAP Reported Adjustment Adjusted June 2006 YTD Gross Profit 1,854.4 5.8 1,860.2 Gross Profit Margin 75.1% 75.4% Operating Profit 918.2 (69.6) 848.6 Settlement of AMO lawsuit and Op Profit Growth 23.0% 13.7% removal of share-based Net Income 761.3 (63.9) 697.4 comp
Slide 30: Notes to Slide 3
Notes to Slide 3 Largest company in eye care. Largest sales force in eye care. ½ of 12,000 employees are in the US, ½ are overseas. Key competitive advantage, sales and marketing on the ground in local markets, developing physician relationships, solely promoting Alcon products. Notes to Slide 3
Slide 31: Notes to Slide 4
Notes to Slide 4 More recently, as we have become larger, our growth has leveled off into the 10% range, which is still quite a good rate for a mature, broad-based company like Alcon. Notes to Slide 4
Slide 32: Notes to Slide 7
Notes to Slide 7 Alcon is a technology driven company, so we have a firm commitment to research that leads the corporate world in eye research. This chart shows the consistent investment to R&D for the last 12 years Expect to invest almost $ 2.5 Billion in R&D over the next 5 years Notes to Slide 7
Slide 33: Notes to Slide 8
Notes to Slide 8 Differentiate our products through clinical outcome and performance Always be state of the art technologically Work with other parties to augment internal capabilities. Invest sufficiently across all the main opportunities. Notes to Slide 8
Slide 34: Notes to Slide 24
Notes to Slide 24 The allergy season in Japan is skewed to the first two quarters of the year, with the peak season beginning in January and ending in March. There isn’t a fall allergy season like here in the US. Opthalmologists are the source of about 75% of the Rx’s, with the balance being written
Slide 35: Notes to Slide 25
Notes to Slide 25 Approaching $200 mio, the anti-infective market is large in Japan. Over 80% of the market is already converted to fluoroquinolones, with the market share leaders offered by Santen. Cravit is Santen’s 3rd generation FQ and is levofloxacin, which is sold in the US under the trade nam