Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 21, 2024 1
Slide 2: Safe harbor
Safe harbor 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 statements
Slide 3: Agenda
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 3
Slide 4: Agenda: Key topics
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 4
Slide 5: Select financial highlights
Select financial highlights 1 rd 1 2Q24 Sales of $2.5B, up 3%, or 6% cc 3 party sales Core operating margin 2Q24 Operating margin of 12.8%, up 160 2Q24 $2.5B 2Q24 19.8% basis points (bps) y/y; up 260 bps cc 2Q24 Core operating margin of 19.8%, 2Q23 $2.4B 2Q23 19.9% down 10 bps; up 70 bps cc 2Q24 Dil
Slide 6: Agenda: Sales
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 6
Slide 7: 1H 2024 Product mix
1 1H 2024 Product mix Vision Care $2.2B (44%) Surgical $2.8B (56%) Ocular health (40%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Steroid eye drops Glaucoma implants Glaucoma eye drops $4.9 billion Contact lens care Consumables (52%) Dedicated consu
Slide 8: Q2 2024 Surgical Net Sales
Q2 2024 Surgical Net Sales 1 (USD) (CC) Surgical growth reflects strength in (USD $M) international markets $1,382 $1,423 3% 6% $437 $464 • Implantables growth led by advanced technology 6% 9% + intraocular lenses in international markets • Continued ATIOL global and US market leadership $714 $736 3
Slide 9: Q2 2024 Vision Care Net Sales
Q2 2024 Vision Care Net Sales Vision Care growth reflects strength in contact lenses (USD $M) (USD) (CC)1 $1,059 4% 6% $1,020 • Product innovation drove sales of contact lenses, + including toric and multifocal modalities • Price increases across contact lens portfolio $594 $636 7% 9% + • Growth in
Slide 10: Agenda: IFRS results
Agenda 01 Key topics 02 Sales 03 IFRS Results 04 Core results 05 Outlook 10
Slide 11: Q2 2024 IFRS results
Q2 2024 IFRS results Worldwide net sales Operating margin Diluted EPS $0.45 12.8% $2.4B $2.5B 11.2% $0.34 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Y/Y change (USD): +3% +160 bps +32% 11
Slide 12: 1H 2024 IFRS results
1H 2024 IFRS results Worldwide net sales Operating margin Diluted EPS 13.9% $0.95 $4.7B $4.9B 11.4% $0.69 1H23 1H24 1H23 1H24 1H23 1H24 Y/Y change (USD): +4% +250 bps +38% 12
Slide 13: Q2 2024 IFRS operating margin bridge
Q2 2024 IFRS operating margin bridge 2Q24 vs. 2Q23, % of net sales 12.8 13.8 2.0 1.2 0.3 11.2 (1.0) (0.9) 2Q23 Gross SG&A R&D Other income/ Foreign 2Q24 Margin expense Exchange 13
Slide 14: 1H 2024 IFRS operating margin bridge
1H 2024 IFRS operating margin bridge 1H24 vs. 1H23, % of net sales 1.7 15.1 13.9 0.5 1.3 (1.2) 11.4 0.2 1H23 Gross SG&A R&D Other income/ Foreign 1H24 Margin expense Exchange 14
Slide 15: Agenda: Core results
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 15
Slide 16: Q2 2024 Core results
1 Q2 2024 Core results Worldwide net sales Core operating margin Core diluted EPS $0.74 $2.5B $0.69 $2.4B 19.9% 19.8% 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Y/Y change (cc): +6% +70 bps +15% 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures.
Slide 17: 1H 2024 Core results
1 1H 2024 Core results Worldwide net sales Core operating margin Core diluted EPS $4.9B 20.3% 20.9% $4.7B $1.52 $1.39 1H23 1H24 1H23 1H24 1H23 1H24 Y/Y change (cc): +7% +160 bps +18% 17 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measu
Slide 18: Q2 2024 Core operating margin bridge
1 Q2 2024 Core operating margin bridge 2Q24 vs. 2Q23, % of net sales 0.4 20.6 0.5 19.8 19.9 1.2 (0.8) (1.4) Includes (1.2) points of supplier- related inventory provisions 2Q23 Gross Margin SG&A R&D Other income/ Foreign 2Q24 expense Exchange Key drivers • Improved underlying operating leverage from
Slide 19: 1H 2024 Core operating margin bridge
1 1H 2024 Core operating margin bridge 1H24 vs. 1H23, % of net sales 0.2 21.9 0.6 1.2 20.9 20.3 (1.0) (0.4) Includes (0.6) points of supplier- related inventory provisions 1H23 Gross Margin SG&A R&D Other income/ Foreign 1H24 expense Exchange Key drivers • Improved underlying operating leverage from
Slide 20: 1H 2024 Cash flow and balance sheet highlights
1H 2024 Cash flow and balance sheet highlights Cash and cash equivalents $1.4 billion 1H24 cash flows from operations $871 million 1 1H24 free cash flow $667 million Capex $204 million Investments in new contact lens manufacturing capacity Debt $4.7 billion No financial covenants 20 1. Free cash flo
Slide 21: Agenda: Outlook
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 21
Slide 22: FY 2024 Outlook
FY 2024 Outlook 2024 outlook as of February as of May as of August Comments $9.9 to $10.1 Net sales (USD) $9.9 to $10.1 billion $9.9 to $10.1 billion Maintain billion 1 Change vs. prior year (cc) +6% to +8% +7% to +9% +7% to +9% Maintain (non-IFRS measure) 1 Core operating margin 20.5% to 21.5% 20.5
Slide 23: Appendix
Appendix 23
Slide 24: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 25: Reconciliation of IFRS results to core results: Q2 2024
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended June 30, 2024 Amortization of Core results IFRS certain intangible Other (non-IFRS (1) (2) (4) ($ millions except earnings per share) results assets Impairments items measure) Gross profit 1,374 165 — — 1,539 Operat
Slide 26: Reconciliation of IFRS results to core results: Q2 2023
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended June 30, 2023 Amortization of Core results IFRS certain intangible Transformation Other (non-IFRS (1) (3) (4) ($ millions except earnings per share) results assets costs items measure) Gross profit 1,363 164 — 5 1,5
Slide 27: Reconciliation of IFRS results to core results: six months 2024
Reconciliation of IFRS results to core results (non-IFRS measure) Six months ended June 30, 2024 Amortization of Core results certain intangible Other (non-IFRS (1) (2) (4) ($ millions except earnings per share) IFRS results assets Impairments items measure) Gross profit 2,756 329 — 3 3,088 Operatin
Slide 28: Reconciliation of IFRS results to core results: six months 2023
Reconciliation of IFRS results to core results (non-IFRS measure) Six months ended June 30, 2023 Amortization of Core results IFRS certain intangible Transformation Other (non-IFRS (1) (3) (4) ($ millions except earnings per share) results assets costs items measure) Gross profit 2,668 333 — 9 3,010
Slide 29: Explanatory footnotes to IFRS to core reconciliation tables
Reconciliation of IFRS results to core results (non-IFRS measure) 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) Transformation costs, pri
Slide 30: Reconciliation of free cash flow (non-IFRS measure)
Reconciliation of free cash flow (non-IFRS measure) The following is a summary of free cash flow for the six months ended June 30, 2024 and 2023, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2024 2023 Net cash flo
Slide 31: Alcon
Alcon SEE BRILLIANTLY