Novartis Ag · SIX:NOVN

Novartis — Exane BNP Paribas Healthcare Conference 2012

22 slides from Novartis's conference presentation, May 10, 2012

1. Slide 1: Novartis Pharmaceuticals performing strongly in Q1 2012

   Novartis Pharmaceuticals performing strongly in Q1 2012 Eric Cornut Head of Europe, Novartis Pharmaceuticals Exane BNP Paribas Healthcare Conference May 10, 2012

2. Slide 2: Disclaimer

   Disclaimer This presentation contains forward-looking statements that can be identified by terminology such as “potential,” “expected,” “will,” “planned,” or similar expressions, or by express or implied discussions regarding potential new products, or potential new indications or labeling for exist

3. Slide 3: Pharmaceuticals with solid sales, profit and cash flow growth in Q1 2012

   Pharmaceuticals with solid sales, profit and cash flow growth in Q1 2012 Growth (in USD m) Q1 2012 Q1 2011 (% USD) (% CC) Net sales 7 839 7 698 2 3 Core operating income 2 589 2 542 2 4 Operating income 2 402 2 461 -2 0 Core operating income margin1 33.0% 33.0% Operating income margin 30.6% 32.0% Fr

4. Slide 4: Global performance driven by broad geographic presence

   Global performance driven by broad geographic presence Net sales Q1 2012 USD 7.8 bn Growth Asia, Africa (CC vs PY) and Australia (25%) United States (33%) US 8% Europe -7% Latin Latin America and Canada +11% America and Asia, Africa and Australia +9% Canada (10%) Total +3% Europe Of which in Establi

5. Slide 5: Emerging markets growing at more than three times the rate of established markets

   Emerging markets growing at more than three times the rate of established markets1 Growth Q1 2012 versus PY (in % CC) Sales Q1 2012  Emerging markets now represent Emerging 7% 1.7 billion Markets1 − 46% of growth − 22% of sales  Growth drivers are China Established 2% 6.1 billion (+27%) and India

6. Slide 6: Europe: strong recently launched products growth offset by healthcare reforms and loss to generics

   Europe: strong recently launched products growth offset by healthcare reforms and loss to generics Q1 2012 contribution to growth- Pharmaceuticals Europe (in % CC) In-Market -2 Recently launched products* 10 Healthcare reform & price cuts -7 Generics** -8 Overall sales growth -7 * Products launched

7. Slide 7: An unparalleled global platform for growth

   An unparalleled global platform for growth Q12012 Q1 2012 Sales Growth vs. PY Indication (USD m) (% CC)  Wet age-related macular degeneration, 567 +30% DME1, RVO2  Moderate to severe asthma 2903 +12%  Multiple sclerosis 247 n/a  Chronic myeloid leukemia 209 +39%  Diabetes mellitus, Type 2 201 +

8. Slide 8: Portfolio rejuvenation continues in Europe

   Portfolio rejuvenation continues in Europe New launches as % of Europe Gen Med business +7pts 52% 43% 2011 Q1 2012 8 | Exane BNP Paribas Conference | Eric Cornut | May 10, 2012 | Novartis Investor Presentation

9. Slide 9: Novartis Europe continues to outperform competitors fuelled by launch brands and execution

   Novartis Europe continues to outperform competitors fuelled by launch brands and execution Recently Launched Products1 Europe Top 10 Pharma Companies* Sales growth MAT Feb 2012 % vs. PY J&J 6.5 Novartis GenMed 5.0 Abbott 4.9 Merck & Co 1.3 Roche -1.1 Bayer -1.1 Pfizer -2.2 GSK -4.9 Sanofi -6.1 Astra

10. Slide 10: Analyst consensus predicts getting to ~7 blockbusters in 2012 – we believe we can deliver 9 or more

    Analyst consensus predicts getting to ~7 blockbusters in 2012 – we believe we can deliver 9 or more 2011 actual sales 2012 sales expectations (in USD bn) (in USD bn) Analyst Consensus1 Glivec® 4.8 Diovan® 4.2 Lucentis® 2.4 Sandostatin® 1.5 Zometa® 1.3 Exforge® 1.2 Tasigna ® 1.1 Exelon® 0.9 Galvus® 0

11. Slide 11: Gilenya label review completed favorably

    Gilenya® label review completed favorably  Treatment initiation to include: • ECG1 before and after first-dose observation • Recommended 6-hour continuous real-time ECG1 monitoring after first dose  Should not be used in populations more likely to develop serious bradyarrthymia or unlikely to  Pr

12. Slide 12: Gilenya in Q1 2012 nearly at blockbuster run-rate despite regulatory review uncertainty

    Gilenya® in Q1 2012 nearly at blockbuster run-rate despite uncertainty due to regulatory review Gilenya® worldwide sales Mid Jan: (in USD m) EMA and FDA regulatory review initiated US RoW  Gilenya® global sales USD 247 m in Q1 2012  RoW makes up >37% of Gilenya® sales in March  Now launching in F

13. Slide 13: European Launch Sequence for Gilenya

    European Launch Sequence for Gilenya® Reimbursed Launch France Belgium Netherlands Germany Norway Denmark Sweden Austria Spain Italy UK 1 H1 2011 H2 2011 H1 2012 Switzerland Greece Portugal Slovakia 1Final NICE guidance issued 25 Apr 2012 13 | Exane BNP Paribas Conference | Eric Cornut | May 10, 201

14. Slide 14: Lucentis with strong growth in Q1 driven by wAMD and launches in DME and RVO

    Lucentis® with strong growth in Q1 driven by wAMD1 and launches in DME2 and RVO3 Worldwide sales and growth (in USD m, growth in % CC) +30%  +30% sales growth vs. PY in Q1 2012 567 +18%  New launches DME2 and RVO3 444 • Now exceed 20%4 of sales in key 364 reimbursed markets5 • In 2012 to be launch

15. Slide 15: Galvus franchise grew 57% in Q1: On track to become a blockbuster

    Galvus® franchise grew 57% in Q1: On track to become a blockbuster Worldwide sales and growth (in USD m, growth in % CC) +57% 201  Now #1 DPP41-inhibitor in 7 markets2 beating competition despite 2nd to 132 market  2nd line monotherapy label approved in EU, further strengthening label beyond renal

16. Slide 16: Onbrez Breezhaler growing 50% over 2011 – NVA/QVA phase III now agreed with FDA

    Onbrez Breezhaler® growing 50% over 2011 – NVA/QVA phase III now agreed with FDA Worldwide sales and growth (in USD m, growth in % CC) +50%  50% sales growth over 2011, now launched and reimbursed in France 29  NVA237 • EU filing Aug 2011 – decision expected 20 mid year 2012 • US phase III agreed

17. Slide 17: Phase III trials from QVA149 IGNITE program meet primary endpoints

    4 Phase III trials from QVA149 IGNITE program meet primary endpoints – EU/Japan filing expected in Q4 2 out of 7 Phase III trials from IGNITE program1  QVA149 vs. placebo, Onbrez®, NVA237 and Spiriva® 26 weeks, n = 2,138  QVA149 showed superior improvement in bronchodilation2 compared to placebo,

18. Slide 18: Monthly AIN457 resulting in up to 81% of patients with at least 75% improvement in psoriasis symptoms

    Monthly AIN457 resulting in up to 81% of patients with at least 75% improvement in psoriasis symptoms AIN457 Phase II results in Psoriasis1 n=125 100 150 mg monthly 75 mg monthly 90 25 mg single Placebo  Most advanced anti-IL-17 in development 80 25 mg monthly  Most comprehensive phase II Response

19. Slide 19: Expected Pharmaceuticals newsflow highlights

    Expected Pharmaceuticals newsflow highlights Jakavi® CHMP opinion in myelofibrosis  H1 2012 QVA149 4 Phase III trials in chronic obstructive pulmonary disease  Afinitor® FDA approval for tuberous sclerosis-AML1  Afinitor® CHMP opinion / FDA action for advanced breast cancer CHMP opinion for tuber

20. Slide 20: Appendix

    Appendix Uh) NOVARTIS

21. Slide 21: Planned filings 2012 to 2016

    Planned filings 2012 to  2016 2012 2013 2014 2015  2016 ACZ885 AFQ056 LCQ908 BKM120 ATI355 LGX818 SJIA1 Fragile X syndrome Metabolic diseases Solid tumors Spinal cord injury Solid tumors Lucentis AIN457 LCZ696 QGE031 AUY922 MEK162 Pathological myopia Psoriasis Heart failure Allergic diseases Solid

22. Slide 22: Recently launched products driving overall sales growth, offsetting revenue loss to generics

    Recently launched products1 driving overall sales growth, offsetting revenue loss to generics Q1 2012 contribution to growth (in % CC) In-Market 0 Recently launched  Overall sales grew 3% in CC, 9 products1 despite Femara® and Diovan® generic competition Healthcare reforms & 0 price cuts  Recently

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