Slide 1: Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing
Alcon, Inc. i) T Worldwide Leader in Ophthalmic Research and Manufacturing TRAVATAN trast opi sai LS,
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 22, 2004, and Alcon does not undert
Slide 3: Reconciliation of Non-GAAP Measures
‘Reconcilition of Free Cash Fl (Mins) ‘Year Ended vot meme. Net cash tom operating actives sar 7014 9154 Wet cach ftom investing actives a3) 438) _caTED Free Cash Flow sua sus 7397 Reconcilstion of Constant Curency Sas: ERALELOTS Tota Smid _Pharma_ Consumer Reported Sales Gromth % 160% 187% BCH is C
Slide 4: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon 4
Slide 5: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon 5
Slide 6: Large and Growing Market
d Growing Market 2004 2007 Other Consumer Other Consumer otic Pharma Eyecare Otic Pharma Eyecare Contact Lens Gare Contact Lens Gare Ophthalmic ‘Ophthalmic Surgical Ophthalmic Surgical Pharmaceuticals Ophthalmic Pharmaceuticals $13.4 $17.2 + 28% Note: Maket data bazed on real audit ata and internal
Slide 7: Population age 65 plus
Population age 65 plus 1,000 +128% 2 : boo +69% oa =e #25% a) 200 0 - - 1 2000 2010 2020 2030 [More Developed M@Less Developed | {Millions of people. Source: United Nations) Bir — ats BaF Alcon;
Slide 8: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon s
Slide 9: Unrivaled Global Reach in Ophthalmology
Unrivaled Global Reach in Ophthalmology *5 Research Centers °14 Manufacturing Plants °70 Operating Companies °40 Physician Training Centers “4 2,000. Employees 2,500 Sales Representatives Worldwide Alcon >
Slide 10: Contribution
Contribution 2003 Reflects percentage of Alcon sales from the US and outside the US Alcon 10
Slide 11: Capitalizing on Global Infrastructure
Capitalizing on Global Infrastructure « Global breadth provides unique competitive advantage « Global registration of new products + Global branding « Leading the development of ophthalmology ¢ Direct sales and service vs. distributors « Strong market growth in developing countries Alcon:
Slide 12: Other Developing Markets Population Age 65+
Other Develc Population Age 65+ United States 37 Million Russia 20 Million India 58 Million China 99 Million (Source: United Nations)
Slide 13: Ophthalmology in Russia
Ophthalmology in Russia Toda’ Future Cataract Procedures 220,000 [aep-aenvilh % With Modern Techniques 15-20% [Blemety74 Glaucoma Diagnosis 800,000 feReleenelee) Alcon:
Slide 14: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon 4
Slide 15: Core Competencies in Eye Care
Core Competencies in Eye Care «Extensive relationships with physicians and researchers «Most comprehensive product portfolio «Unmatched research and development capabilities *High quality manufacturing and technical service -Broadest marketing, sales and distribution organizations «Undisputed compet
Slide 16: Pharmaceutical Sales
Pharmaceutical Sales #1 Global Share — 23% US Share Franchise Position Allergy cal Anti-infectives #1 Anti-Inflam. #1 Combinations #1 Generics #1 Glaucoma #3 (Millions of US Dollars) Alconis
Slide 17: Azopt, Travatan sales
Azopt Uapan) Travatan Filed in Japan in Q3 2004 | (EU) v Travatan (US) s “ (EU) 1995 1997 1999 2001 2003 (Dollars in US Millions)
Slide 18: Fluoroquinolone Franchise
of Fluoroquinolone Franchise 2 | Il Prescrib 100% 80% 60% 40 56% 59% 51% ri 20% 0% + T T T HI Feb-O4 MarO4 AprO4 May04 JunO4 Jul04 Aug-04 wVigamox™ wCiloxan® (US conversion trend for Vigamox™and Ciloxan3) Note: Conversion bazed on retail pharmacy aust data Vis, oo = Alcon is
Slide 19: US market share of Fluoroquinolones
@ Vigamox™ Zymar © Other Including Generics; (US market share of Fluoroquinolones for the month of August 2004) Note sions based on fetal pharmacy audit data
Slide 20: Branded Otic Share Performance
Branded Otic Share Performance Market Share % 30 25.8 26.7 26 723-6 20 22.7 19.8 18.2 15 10 T T T T T T T 1 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug —# Rolling 12 2003 —@ Rolling 12 2004 (US market share for CiproDex and Cipro HC combined) (Cipro ard Ciprafex sre trademark of Bayer, AG lieans
Slide 21: #1 Global Share — 47%
#1 Global Share — 47% Re 8% che’ 2000 2001 2002 Note: ghare posione based on industry data and intemal estimates (Millions of US Dollars) Alcon >
Slide 22: AcrySof Natural Conversion Trend
onversion Trend Q fe) AcrySof® Natu % of acrysct? | Franchise 100% 90% 80% 70% 60% 50% 40% : 30% 384 RS me: 9,33 I 35% 36% "| 10% | Jad 0% 4 Mar-04 Apr-04 May-04 Jun-O4 Jul04 Aug-04 Sep-04 Natural mConventional
Slide 23: AcrySof Share Performance
ySof® Share Performance i Market Share % 55 50 45 40 KL] T T 2000 2001 2002 2003 Q2 YTD 2004 Alcon 23
Slide 24: #2 Global Share — 18%
#2 Global Share — 18% 2000 2001 2002 Note: Share posione bazed on retal aut data and infernal estimates (Millions of US Dollars)
Slide 25: Dry Eye Share Performance
y Eye Share Performance Market Share % x0 Systane Launched (US) 21.4 19.5 19.5 20.0 5 15.0 10.0 T T T 1 2001 2002 2003 Q2 YTD 2004 (Alcon US share of total artificial tears over-the-counter market) = bazed on real audit data Alcon 2s
Slide 26: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon 2
Slide 27: $3.4 Billion
$3.4 Billion a ull eT 1978 at 1988 1993 1998 2003
Slide 28: Global Operations: Sales and Operating Income
obal Operations Sales Operating Income (US § Millions - Reported Numbers) Alcon 2s
Slide 29: Strong Cash Flow
Strong C: Free Cash Flow Net Earnings 2003 2001 (Free Cach Flow = Net cash fram operating activities less net cach from investing activities) Note: See recondition of non-GAAP measures to reported numbers (US $ Millions) Ws a
Slide 30: Sales Growth: Reported +15.9%
Reported = +15.9% Constant Currency = +12.0% ‘owth % | Constant Reported Currency + 15.7% + 10.7% + 18.6% +15.8% 14% + 9.3% + 5.8% Q3 YTD 2003 Q3 YTD 2004 GD Surgical HM Pharmaceutical MM Consumer ‘ot, Se seroniiatonofnon-caAP messures to 2 Ka
Slide 31: EPS +35.6%
EPS = + 35.6% Q3 YTD 2003 Q3 YTD 2004 (Excludes the $0.18 impact oftax settlements and tax credits recorded in @2 2004.) Note: See recondition of non-GAAP meacutes to reported numbers
Slide 32: 2004 Full Year Financial Guidance
2004 Full Year Financial Guidance * Sales range from $3.85 to $3.90 billion — Healthy global growth across major product lines — Share gains from recent product launches — Less currency benefit — Ciloxane expiration Alcon 3.
Slide 33: 2004 Full Year Financial Guidance
2004 Full Year Financial Guidance * EPS range from $2.52* to $2.55* — Mix improvement from new products — Leveraging operating infrastructure — Increased promotional and R&D activity — Ciloxane expiration “Excludes impact of tax settlements and tax credits recorded in Q2 2004, Nota: See reconciliati
Slide 34: Strategic Sales Growth Drivers
Strategic Sales Growth Drivers Aging Global Market Populations Expansion Alcon
Slide 35: Investment Dynamics
Investment Dynamics Large and Growing Markets Innovation & Research World’s Leading Eye Care Company Financial Global Performance Reach Market Leadership Alcon 3s
Slide 36: (US $ Millions)
(US $ Millions)
Slide 37: Pharmaceutical R&D Pipeline
cal/ R&D Pipeline 2004 2005 2006+ Status Patanol® QD === Filed Extravan™ CY Filed Brimonidine/Polyquad [x Filed RETAANE™ _~+ Phase Ill Patanol® Nasal 7 Phase Ill 15(S)-HETE (Dry Eye) i = Phase Ill Nepafenac ES | Phase II Moxi/Dex Es =| Pre-Clinical ‘Approval targets are for U.S, regutatory approvals
Slide 38: Surgical/Consumer R&D Pipeline
urgical/Consumer R&D Pipeline 2004 2005 2006+ Status Filed Filed Filed Filed Advanced Advanced Active Early Early Systane® Next Gen. Lz, Advanced New CLC Solution ——— | Advanced Approval targets are for U.S, regutatory approvals 2996+ indicates expected approvatin 2606 or beyond Alcon 3s
Slide 39: Cataract — A Critical Market Segment
Cataract — A Critical Market Segment « Most common surgical procedure (9 million annually) « Largest product franchise with high gross margin « Strong demand increase due to aging population and growth in developing countries Alcon 3.
Slide 40: AcrySof Platform Development
Sof Platform Development fT AcrySof Multi-Piece AcrySof Single Piece AcrySof Natural Mai, Scan *High refractive index *Smaller incision "Bonded chromophore Biocompatible Controlled delivery imics natural lens Superior safety profile "Durable Haptics *Filters blue light "Reduced PCO "Stable Positioni
Slide 41: Healthy Human Crystalline Lens Over Time
Healthy Human talline Lens Over Time 6 months 8 years 12 years 15 years 47 years 60 years “Photos from Lerman 8 Radiant Energy and the Eye. New York: 70 years 82 years 90 years Macmillan, 1980 2 Alcon a
Slide 42: Blue Light Damage Mechanism
Blue Light Damage Mechani Lipofuscin accumulates in aging retinal cells J Buetight Oxidation of lipofuscin in retinal cells { Production of free radicals { DNA Disruption Retinal cells experience apoptosis and cell death Source: Winkler BS, Boulton ME, Gottsch JD, Stemberg P. Oxidative damage and ag
Slide 43: AcrySof Natural Lens
AcrySof® Natural Lens (Approximates 2! Old Lens) Wavelength (nr e » Alcon 3
Slide 44: Optical vs. mechanical accommodation
« Optical vs. mechanical accommodation « Apodized diffractive! refractive design + Balances near and distance light energy independent of pupil size ¢ Optimal management of light decreases visual disturbances “Investigational device currently under review by the USFDA. Alcon
Slide 45: Providing Better Distance and Near Vision
Providing Better Di: 20/25 or better Distance AND J2 or better Near 100 oo (p<0.0001 == i I< sag ‘(0.00011 U » 80 2 rr] = 60 s wa 5 40 # 22.7 ‘ a | 0 : Uncorrected Distance Corrected Best Corrected BReSTOR (N=457) @Monofocal (N=157) .- Wc 1E goer tk amy
Slide 46: Clinical Results: Visual Disturbances
uDlsiA ajqneq uDIsIA Jey paunig uolsiA upaN paunig uolsi, Jey payojsiq uols!A Jean payojsiq = uoydesieg J0}09 | uo|siA 1U6IN rene omne ao sBulyey uRoW Clinical Results @ Monofocal @ ReStor Visual Disturbances ySof® ReSTOR®
Slide 47: Portion of Time Wearing Glasses
i a ae Portion of Time Wearing Glasses Binocular Post-Op 60 @ReStor 50 w Control % Subjects s S Never Sometimes Always Ker
Slide 48: Future
Future Today
Slide 49: Alcon, Inc.
+++} Alcon, Inc. \/orldwide Leader in Ophthalmic Research and Manufacturing (i seae® yee 2 NS ES Alcon