Alcon Ag · SIX:ALC
Alcon — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
28 slides from Alcon's conference presentation, Jan 11, 2023
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference David J. Endicott, CEO January 11, 2023
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: Resilient markets driven by favorable megatrends
Resilient markets driven by favorable megatrends Aging Increasing Increasing JP MORGAN New HEALTHCARE CONFERENCE Increasing Sense Population Wealth Myopia Technologies INVESTOR PRESENTATION of Wellness By 2050, more than The middle class An estimated 50% Improving patient People are more 2 billion p
Slide 4: Alcon's strategy
Alcon’s strategy Specialty market expertise • Customer knowledge • Market assessment • Market development • Global commercialization We focus on eye care Specialty technology expertise We create value by applying specialty market • Materials science • Surface chemistry and technical knowledge to • F
Slide 5: We aspire to lead the world in eye care innovation
We aspire to lead the world in eye care innovation 37 23 $680M+ Surgical Vison Care Core R&D launches1 launches1 investment since since 2018 2018 since 2018 since 2018 in2020 in 2021versus 2018 JP MORGAN HEALTHCARE CONFERENCE 1.4K ˜2.1K 100+ R&D Active patent Active associates families2 projects in
Slide 6: Innovating behind high-growth markets and share opportunities
Innovating behind high-growth markets and share opportunities FAST Precision1 for Astigmatism Vivity PanOptix Dailies Total1 for Astigmatism MARKET GROWTH Hydrus Microstent Precision1 RELATIVE Pataday Systane MDPF Total30 for Astigmatism JP MORGAN HEALTHCARE CONFERENCE Next-gen Phaco-Vit Console* Op
Slide 7: Three years of surgical product flow
Three years of surgical product flow (International) 2019–2020 biometer (US) 2021–2022 (US) (US) 2023+ Next-Gen Diagnostic Next-Gen Phaco-vit Novel Delivery System List is non exhaustive. New product launches may not be listed in chronological order. 7
Slide 8: Three years of vision care product flow
Three years of vison care product flow Twice Daily and Once Daily (US) 2019–2020 for Astigmatism for Astigmatism 2021–2022 Complete, Ultra and Hydration Once Daily Mult-Dose Extra Strength (US) Preservative-Free. 2023+ for Astigmatism Multifocal List is non exhaustive. New product launches may not b
Slide 9: Surgical
Surgical
Slide 10: The breadth of Alcon's equipment portfolio and service offering is unique in eye care
The breadth of Alcon’s equipment portfolio and service offering is unique in eye care JP MORGAN HEATHCARE CONFERENCE ARGOS NGENUITY LuxOR Revalia CENTURION & Consumables CONSTELLATION In-office pre- 1st and only intra- Intra-operative Cataract and Cataract, operative biometer operative digital visua
Slide 11: Alcon's portfolio of intraocular lenses, now on Clareon
Alcon’s portfolio of intraocular lenses, now on Clareon Clareon offers • Exceptional, long-lasting clarity • Proprietary precision edge design to reduce secondary cataract and edge glare • Excellent stability for predicable refractive outcomes Alcon leads the PCIOL market1 • ~50% share globally • >8
Slide 12: Significant headroom for ATIOL penetration
Significant headroom for ATIOL penetration US ATIOL Penetration1 Estimated US penetration ceiling: ~40% 4 out of 10 US patients are willing ~19% 1 point of US penetration = to pay for a ~$30M Alcon revenue better ~11% 1 point of global penetration = ~$100M Alcon revenue performing IOL2 2012 2022 ...
Slide 13: Vision Care
Vision Care
Slide 14: Contact lenses: winning with torics
Contact lenses: winning with torics The daily toric market • Fast growing segment of the market1 • Opportunity to grow international toric penetration Mainstream daily SiHy toric lens Proprietary technology improves wearer experiences • Proven PRECISION BALANCE 8|4® lens design delivers stable weari
Slide 15: New product launches driving market share gains in key segments
New product launches driving market share gains in key segments ALC global daily sphere contact lens market share evolution3 ALC global contact lens market share evolution3 ~25%3 ~300 basis points of share growth3 ~150 basis points of share growth3 ALC global daily toric contact lens market share ev
Slide 16: Growing our leadership in ocular health
Growing our leadership in ocular health Long history and significant expertise in eye drops • Commercial & market access, R&D, product development and significant manufacturing capabilities Commercial expertise • Efficiently utilizing existing US sales force dedicated to selling eye drops in the oph
Slide 17: Finance
Finance
Slide 18: Delivering operating leverage
Delivering operating leverage 9M22 IFRS operating margin bridge 9M22 vs. 9M21, % of net sales 12.1 10.0 18
Slide 19: Delivering operating leverage
Delivering operating leverage 9M22 core operating margin1 bridge 9M22 vs. 9M21, % of net sales 20.4 18.7 1. Core operating margin is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 19
Slide 20: Capital allocation priorities remain consistent
Capital allocation priorities remain consistent Invest in Invest in BD&L Return to organic growth and M&A shareholders • R&D investment • Agnostic to the source of • Continued dividend innovation pending annual • New product launches Board and • Bolt-on acquisitions and • Capacity expansion adjacenc
Slide 21: Key takeaways
Key takeaways • Leader in resilient markets • Successfully launching new products in high-growth and high- share opportunities • A broad surgical portfolio with scale • Significant opportunity in contact lenses with new products • Expanding ocular health presence • Delivering margin expansion 21
Slide 22: Thank You
Thank You
Slide 23: Appendix
Appendix
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 Nine months ended September 30, 2022 25
Slide 26: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Nine months ended September 30, 2021 26
Slide 27: 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 and t
Slide 28: Alcon
Alcon
Alcon — 41st Annual J.P. Morgan Healthcare Conference (January 2023) on 6ix