Slide 1: Third Quarter 2010 Webcast
Exhibit 99.1 Third Quarter 2010 Webcast October 21, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, made on October 21, 2010, includes forward-looking statements based on current expectations and Alcon does not undertake the obligation to update the forward-looking information or statements. These expectations could differ materially from actual results and
Slide 3: Business Overview
Business Overview Kevin Buehler President and Chief Executive Officer
Slide 4: Strong, Consistent Performance
Strong, Consistent Performance Strong top-line sales growth Q3 2010 organic growth of 8.7% (+9.0% reported) YTD 2010 organic growth of 9.9% (+12.2% reported) Solid financial p performance Operating income Q3 2010 adjusted growth of 8.7% (-14.4% reported) YTD 2010 adjusted growth of 15 15.7% 7% (+10
Slide 5: Delivering Sustainable Organic Growth
Delivering Sustainable Organic Growth Global Organic Sales Growth by Quarter 2010 Year-to-date organic growth of 9.9% (+12.2% reported) 12.0% 11.3% 9.6% 9.0% 8.7% 8.5% 8.0% 4.8% 4 0% 4.0% 3 3% 3.3% 0.0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Reported -2.8% -3.4% 5.9% 14.5% 15.3% 12.5% 9.0% Growth
Slide 6: Balanced Global Contributions
Balanced Global Contributions Q3 2010 Sales by Geography $357 Reported: +20.2% +20 2% $803 Organic Growth: +19.2% Emerging Reported: +9.5% Markets Organic Growth: +7.9% 20.3% U.S. U S 45.6% Developed International 34.1% $600 Reported: +2.7% Organic Growth: +4.3% (dollars in millions) Growth rates as
Slide 7: Diversified Product Growth
Diversified Product Growth Q3 Global Sales by Product Line $1,000 +14.2% Organic Growth +3.7% Organic Growth +8.8% Organic Growth +15.0% Reported +3.8% Reported +8.8% Reported $800 $758 $767 $739 dollars in milliions) $600 $659 $400 (d $200 $216 $235 $0 Pharmaceuticals Surgical Consumer Q3 2009 Q3 2
Slide 8: Commercial Execution Driving Market Share Gains
Commercial Execution Driving Market Share Gains Global U.S. RX Growth August YTD August YTD Brand Market Brand Market TRAVATAN® Family 10.9% 6.7% 9.2% 2.9% Azopt® + AZARGA® 16 5% 16.5% 7 5% 7.5% 7 9% 7.9% 10 0% 10.0% Vigamox® * 10.1% 6.2% -2.2% -4.2% NEVANAC® 39 5% 39.5% 3 1% 3.1% 14 9% 14.9% -0 4%
Slide 9: U.S. Cataract Procedure Growth Moderating
U.S. Cataract Procedure Growth Moderating U.S. Cataract Procedure Growth Market Scope estimates full-year 2010 U.S. cataract 6.0% procedures will rise 2.7% 4.9% 4.7% 4.0% % 2.6% 2 0% 2.0% 2 3% 2.3% 2.1% 1.8% 1.3% 0.0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Estimated Source: Market Scope Growth ra
Slide 10: Increasing Penetration Key to AT-IOL Growth
Increasing Penetration Key to AT-IOL Growth AT-IOLs as a Percentage of Total U.S. IOLs Implanted Rising utilization of both presbyopia-correcting and 16% toric lenses are driving U.S. AT-IOL penetration 14% 13.5% 12 8% 12.8% 12.5% 12% 11.2% 11.2% 10.8% 10% 8% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Sour
Slide 11: Durable Opportunity in International Markets
Durable Opportunity in International Markets Developed International Organic Growth Emerging Market Organic Growth 25% 25% 20% 20% 18.8% 18.7% 18.1% 16.1% 15% 15% 11 6% 11.6% 11.2% 10% 8.5% 8.5% 10% 6.9% 5.6% 5% 5% 0% 0% 2006 2007 2008 2009 YTD Q3 2006 2007 2008 2009 YTD Q3 2010 2010 Reported Growth
Slide 12: 2010 Key Late Stage R&D Pipeline Activity
2010 Key Late Stage R&D Pipeline Activity 2010 SUBMISSIONS 2010 APPROVALS FILED PENDING RECEIVED PENDING ALLEGRETTO™ EX-500 AcrySof® IQ Toric expanded Patanase® new indication TRAVATAN® Alternative refractive laser (EU) diopter range (Japan) (US) Preservative System (EU) TRAVATAN® Alternative ALLEGR
Slide 13: Business Development Delivering Growth
Business Development Delivering Growth Optonol Acquisition Further broadens Alcon’s extensive glaucoma product offering Sales of Ex-PRESS® ophthalmic glaucoma device steadily building DUREZOL® Acquisition Adds potent steroid to Alcon’s ’ anti-infective f portfolio f Integration exceeding expectation
Slide 14: Leveraging Commercial Capabilities
Leveraging Commercial Capabilities DUREZOL® U.S. Market Share August 2010 U.S. market share of 6.0% 8% versus 1.3% in August 2009 6.0% 6% 4.4% 4% 3.2% 2.3% 2% 1.7% 1.5% 1.6% 1.5% 0% Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Source: WK Health
Slide 15: Exciting New Cataract Technology
Exciting New Cataract Technology LenSx Lasers Acquisition LenSx femtosecond laser improves key steps in cataract surgery Uses technology to automate previously manual procedures Micron-level laser precision and predictability Provides new growth driver to Alcon’s leading cataract portfolio Complemen
Slide 16: Change of Majority Ownership
Change of Majority Ownership Alcon remains an independent, publicly-traded company Potential opportunities to create value for Alcon – Within the framework of good corporate governance – Through arm’s length negotiations Potential to leverage a leadership position in the total healthcare market Pote
Slide 17: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer
Slide 18: Sales
Sales Q3 Sales YTD Sales (dollars in millions) (dollars in millions) +9.0% Reported p +12.2% Reported p $1,850 +8.7% Organic Growth $5,500 +9.9% Organic Growth $5,367 $1,760 $1,700 $5,000 $4 784 $4,784 $1,614 $1,550 $4,500 $1,400 $4,000 Q3 2009 Q3 2010 YTD 2009 YTD 2010 Growth rates as compared to s
Slide 19: Gross Profit
Gross Profit Q3 Gross Profit (dollars in millions) $1,500 +10.1% $1,300 $1,338 $1,215 $1,100 $900 Q3 2009 Q3 2010 % of 75.3% 76.0% Sales Growth rate as compared to same period in prior year.
Slide 20: Change of Majority Ownership Expenses
Change of Majority Ownership Expenses Q3 2010 YTD 2010 Other operating expenses $ 133 $ 141 Tax effect (20) (20) Impact to Net earnings $ 113 $ 121 Impact to diluted EPS $ 0.37 $ 0.40 (dollars in millions, except per share amounts) Adjusted operating income, income net income and diluted EPS measure
Slide 21: Operating Income
Operating Income Q3 Reported Q3 Adjusted $800 (dollars in millions) $800 (dollars in millions) -14.4% 14.4% +8.7% 8.7% $600 $600 $628 $578 $578 $495 $400 $400 $200 $200 Q3 2009 Q3 2010 Q3 2009 Q3 2010 % of % of 35.8% 28.1% 35.8% 35.7% Sales Sales Growth rates as compared to same period in prior year
Slide 22: Operating Income
Operating Income YTD Reported YTD Adjusted $2,500 (dollars in millions) $2,500 (dollars in millions) +10.2% 10.2% +15.7% 15.7% $2,000 $2,000 $2,016 $1,899 $1,724 $1,743 $1,500 $1,500 $1,000 $1,000 YTD 2009 YTD 2010 YTD 2009 YTD 2010 % of % of 36.0% 35.4% 36.4% 37.6% Sales Sales Growth rates as compa
Slide 23: Net Earnings and Diluted EPS
Net Earnings and Diluted EPS Q3 Reported Net Earnings Q3 Adjusted Net Earnings $700 (dollars in millions) $700 (dollars in millions) -13.4% 13.4% +8.5% $600 $600 EPS $1.84 EPS $1.71 EPS $1.71 $559 $500 $515 $500 $515 EPS $1.47 $446 $400 $400 $300 $300 Q3 2009 Q3 2010 Q3 2009 Q3 2010 % of % of 31.9%
Slide 24: Net Earnings and Diluted EPS
Net Earnings and Diluted EPS YTD Reported Net Earnings YTD Adjusted Net Earnings $2,250 (dollars in millions) $2,250 (dollars in millions) +9.0% 9.0% +16.1% EPS $5.97 $1,750 EPS $5.56 $1,750 $1,815 EPS $5.15 $1,689 EPS $5.20 $1 549 $1,549 $1 563 $1,563 $1,250 $1,250 $750 $750 YTD 2009 YTD 2010 YTD 2
Slide 25: Raising 2010 Full Year Adjusted EPS Guidance
Raising 2010 Full Year Adjusted EPS Guidance • Organic growth in the high single digits • Diluted earnings per share: Adjusted EPS guidance $7.58 - $7.68 • Includes on-going U.S. health care reform costs – $20 million full-year $ y sales impact p – $0.06 full-year diluted EPS impact • Project and de
Slide 26: Third Quarter 2010 Webcast
Third Quarter 2010 Webcast October 21, 2010
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non Non-GAAP GAAP Financial Measures (in millions, except per share data) Operating Income Q3 2010 Q3 2010 Q3 2009 Growth % % of Sales As Reported $ 495 $ 578 -14.4% 28.1% Change-in-Control Expenses 133 -- As Adjusted $ 628 $ 57
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in millions, except per share data) Operating Income YTD 2010 YTD 2010 Q3 2009 Growth % % of Sales As Reported $ 1,899 $ 1,724 10.2% 35.4% Change-in-Control Change in Control Expenses 141 -- Change i
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in millions, except per share data) Diluted EPS YTD 2010 Q3 2009 Growth % As Reported $ 5.56 $ 5.15 8.0% Change-in-Control Expenses 0 40 0.40 -- Change in Royalty Adjustment (0.08) -- U.S. Healthcare
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Foreign Reported Currency Acquisition Organic Total Global Sales Change Change Change Change Q1 2009 (2.8) % (7.6) % -- % 4.8 % Q2 2009 (3 4) (3.4) (6 7) (6.7) -- 33 3.3 Q3 2009 5.9 (3.1) -- 9.0 Q4 20
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation eco c at o o of Non-GAAP o G Financial a c a Measures easu es (in millions) Three Months Ended Foreign September 30, Currency Acquisition Organic 2010 2009 Change Change Change Change Sales by Product Line: Pharmaceutical $ 758 $ 6
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Foreign Reported Currency Acquisition Organic Developed International Sales Change Change Change Change 2006 86 8.6 % 01 0.1 % -- % 85 8.5 % 2007 19.9 7.5 0.8 11.6 2008 18.0 6.7 2.8 8.5 2009 3.7 (3.2)
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures Foreign Reported Currency Acquisition Organic Q3 2010 Sales Change Change Change Change Emerging markets 20.2 % 1.0 % -- % 19.2 % Advanced Ad d technology t h l 13.5 (0.1) -- 13.6 intraocular lenses F