Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 14, 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 1Q24 Sales of $2.4B, up 5%, or 7% cc 3 party sales Core operating margin 1Q24 Operating margin of 15.1%, up 360 1Q24 $2.4B 1Q24 22.0% 1 basis points (bps) y/y; up 490 bps cc 1Q24 Core operating margin of 22.0%, up 1Q23 $2.3B 1Q23 20.6% 1 140 bps, or up 260 bps cc 1
Slide 6: Agenda: Sales
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 6
Slide 7: Q1 2024 Product mix
1 Q1 2024 Product mix Vision Care $1.1B (45%) Surgical $1.3B (55%) Ocular health (39%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Steroid eye drops Glaucoma implants Glaucoma eye drops $2.4 billion Contact lens care Consumables (51%) Dedicated consu
Slide 8: Q1 2024 Surgical Net Sales
Q1 2024 Surgical Net Sales 1 (USD) (CC) Surgical growth reflects strength in (USD $M) international markets $1,338 3% 6% $1,304 $433 • Implantables growth led by advanced technology $427 1% 6% + intraocular lenses in international markets • Continued ATIOL global and US market leadership • Consumabl
Slide 9: Q1 2024 Vision Care Net Sales
Q1 2024 Vision Care Net Sales Vision Care growth reflects strength in contact lenses (USD $M) (USD) (CC)1 and eye drops $1,106 7% 10% $1,029 • Product innovation drove sales of contact lenses, + including toric and multifocal modalities • Price increases across contact lens portfolio $615 $671 9% 11
Slide 10: Agenda: IFRS results
Agenda 01 Key topics 02 Sales 03 IFRS Results 04 Core results 05 Outlook 10
Slide 11: Q1 2024 IFRS results
Q1 2024 IFRS results Worldwide net sales Operating margin Diluted EPS 15.1% $0.50 $2.4B $2.3B 11.5% $0.35 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 Y/Y change (USD): +5% +360 bps +43% 11
Slide 12: Q1 2024 IFRS operating margin bridge
Q1 2024 IFRS operating margin bridge 1Q24 vs. 1Q23, % of net sales 1.6 16.4 15.1 0.7 1.3 (1.3) 1.3 11.5 1Q23 Gross SG&A R&D Other income/ Foreign 1Q24 Margin expense Exchange 12
Slide 13: Agenda: Core results
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 13
Slide 14: Q1 2024 Core results
1 Q1 2024 Core results Worldwide net sales Core operating margin Core diluted EPS 22.0% $2.4B 20.6% $2.3B $0.78 $0.70 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 Y/Y change (cc): +7% +260 bps +21% 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures
Slide 15: Q1 2024 Core operating margin bridge
1 Q1 2024 Core operating margin bridge 1Q24 vs. 1Q23, % of net sales 0.7 0.1 23.2 1.3 22.0 0.5 (1.2) 20.6 1Q23 Gross Margin SG&A R&D Other income/ Foreign 1Q24 expense Exchange Key drivers • Improved underlying operating leverage from higher sales and timing of discretionary spend • Negative 120 bps
Slide 16: Q1 2024 Cash flow and balance sheet highlights
Q1 2024 Cash flow and balance sheet highlights Cash and cash equivalents $1.1 billion 1Q24 cash flows from operations $341 million 1 1Q24 free cash flow $229 million Capex $112 million Investments in new contact lens manufacturing capacity Debt $4.7 billion No financial covenants 16 1. Free cash flo
Slide 17: Agenda: Outlook
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 17
Slide 18: FY 2024 Outlook
FY 2024 Outlook 2024 outlook as of February as of May Comments Net sales (USD) $9.9 to $10.1 billion $9.9 to $10.1 billion Maintain 1 Change vs. prior year (cc) +6% to +8% +7% to +9% Increase (non-IFRS measure) 1 Core operating margin 20.5% to 21.5% 20.5% to 21.5% Maintain (non-IFRS measure) 2 Inter
Slide 19: Appendix
Appendix 19
Slide 20: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 21: Reconciliation of IFRS results to core results (Q1 2024)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended March 31, 2024 Amortization of Core results IFRS certain intangible Other (non-IFRS (1) (3) ($ millions except earnings per share) results assets items measure) Gross profit 1,382 164 3 1,549 Operating income 368 16
Slide 22: Reconciliation of IFRS results to core results (Q1 2023)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended March 31, 2023 Amortization of Core results IFRS certain intangible Transformation Other (non-IFRS (1) (2) (3) ($ millions except earnings per share) results assets costs items measure) Gross profit 1,305 169 — 4 1,
Slide 23: 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) Transformation costs, primarily related to restructuring and third party consulting fee
Slide 24: Reconciliation of free cash flow
Reconciliation of free cash flow (non-IFRS measure) The following is a summary of free cash flow for the three months ended March 31, 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
Slide 25: Alcon - See Brilliantly
Alcon SEE BRILLIANTLY