Slide 1: Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing
Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing
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 April 25, 2005, and Alcon does not undertak
Slide 3: Management Presentation by Cary Rayment and Jacqualyn Fouse
Management Presentation by Cary Rayment President & CEO Jacqualyn Fouse Senior Vice President of Finance & CFO 3
Slide 4: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 05 Q1 04 Growth Global Sales $ 1,070.5 $ 963.6 11.1% Net Earnings $ 249.5 $ 191.0 30.6% Diluted EPS $ 0.80 $ 0.61 31.1% (dollars in millions, except per share amounts) 4
Slide 5: Geographic Sales Breakdown
Geographic Sales Breakdown Q1 2005 Q1 2004 29.2% 28.7% 48.7% 50.3% 7.2% 7.7% 14.9% 13.3% United States United States EURMEA EURMEA Japan Japan Rest of World Rest of World 5
Slide 6: Q1 2005 Sales and Growth by Business Unit
Q1 2005 Sales and Growth by Business Unit Reported Constant Sales$ Growth Currency Global Sales $ 1,070.5 11.1% 8.5% United States $ 521.2 7.5% 7.5% International $ 549.3 14.7% 9.6% Note: Constant currency sales growth is a non-GAAP measure presented (dollars in millions, except per share amounts) t
Slide 7: Pharmaceutical Sales
Pharmaceutical Sales $600 Reported Growth: + 14.0% Constant Currency: + 11.8% $400 $432.0 $379.1 $200 $0 Q1 2004 Q1 2005 Note: Constant currency sales growth is a non-GAAP measure presented (dollars in millions) to give investors a better comparison of operations between years 7
Slide 8: Consumer Sales
Consumer Sales $200 Reported Growth: + 6.8% Constant Currency: + 4.4% $150 $140.6 $150.2 $100 $50 $0 Q1 2004 Q1 2005 Note: Constant currency sales growth is a non-GAAP measure presented (dollars in millions) to give investors a better comparison of operations between years 8
Slide 9: Surgical Sales
Surgical Sales $600 Reported Growth: + 10.0% Constant Currency: + 7.1% $400 $488.3 $443.9 $200 $0 Q1 2004 Q1 2005 Note: Constant currency sales growth is a non-GAAP measure presented (dollars in millions) to give investors a better comparison of operations between years 9
Slide 10: AcrySof ReSTOR Intraocular Lens
AcrySof® ReSTOR® Intraocular Lens • Combines three complementary technologies (diffractive, refractive and apodization) • Provides full range of functional vision while minimizing unwanted photic disturbances • Provides excellent clinical outcomes and quality of life 10
Slide 11: Percent of Patients Never Using Glasses
Percent of Patients “Never” Using Glasses 100% 90% 80.0% ReSTOR® 80% Array 70% Crystalens % of Patients 60% Monofocal 50% 41.0% 40% 30% 25.8% 20% 8.0% 10% 0% Never Note: Data from FDA approved product labels Overall Spectacle Wear 11
Slide 12: 2005 AcrySof ReSTOR Guidance
2005 AcrySof® ReSTOR® Guidance • Global Sales range from $35 to $45 million – Pricing outside Government reimbursement – Included in previous and updated guidance 12
Slide 13: First Quarter Financial Results
First Quarter Financial Results % % of Q1 05 Growth Sales Sales $1,070.5 11.1% 100.0% Gross Margin $ 781.9 16.0% 73.0% Operating Profit $ 326.8 18.1% 30.5% Income Taxes $ 78.8 (8.3%) N/M* Net Earnings $ 249.5 30.6% 23.3% *Not Meaningful (dollars in millions) 13
Slide 14: Sales Growth Analysis – Pharma Products
Sales Growth Analysis – Pharma Products US Global Pharma Pharma Reported Growth 7.2% 14.0% Ciloxan Impact 2.5% 2.3% Change in Cash Disc % 1.3% 0.7% Adjusted Growth % 11.0% 17.0% Note: Adjusted Growth % is a non-GAAP measure presented to give investors a better comparison of operations between years
Slide 15: Sales by Market Development
Sales by Market Development All Developed Emerging Markets Markets Markets Q1 Sales $ 1,070.5 $ 923.5 $ 147.0 Q1 Reported Growth 11.1% 9.0% 26.7% Percent of Sales 100.0% 86.3% 13.7% Developed and emerging markets are defined by the United Nations. (dollars in millions) 15
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights 3/31/05 12/31/04 Short and Long Term Borrowings $ 1,067.4 $ 988.0 Cash and Cash Equivalents $ 1,312.0 $ 1,093.4 Consolidated S/H Equity $ 2,374.5 $ 2,187.9 A/R Change (From 12/31/04) 8.2% N/A Inventory Change (From 12/31/04) (5.4%) N/A (dollars in millions) 16
Slide 17: Cash Flow Highlights
Cash Flow Highlights Q1 05 Q1 04 Net Cash From Operations $ 266.4 $ 190.6 Net Cash From Investing $ (59.1) $ (62.7) Net Cash From Financing $ 41.7 $ (275.0) (dollars in millions) 17
Slide 18: 2005 Outlook
2005 Outlook Alcon :;
Slide 19: 2005 Full Year Financial Guidance: Sales
2005 Full Year Financial Guidance • Sales range from $4.325 to $4.400 billion – Global growth across major product lines – Share gains from recent product launches – Ciloxan® patent expiration (first half of year) – Faster growth in second half of year 19
Slide 20: 2005 Full Year Financial Guidance: EPS
2005 Full Year Financial Guidance • EPS range from $3.25 to $3.30 – Higher gross margin from product mix and production efficiencies – Ciloxan® patent expiration (first half of year) – Lower effective tax rate – Stock option expense delayed until 2006 20
Slide 21: Alcon, Inc.
Alcon, Inc. \X/orldwide Leader y in Ophthalmic Beseayen and Manufacturing