Novartis AG · SIX:NOVN

Novartis — FY2003 Earnings Presentation

4 slides from Novartis's earnings presentation, Jan 22, 2004

Slide 1: Conclusions and Outlook
Conclusions and Outlook Daniel Vasella, MD Chairman and CEO, Novartis AG Meeting Patient’s Needs New innovative medicines Patent Generics free up funds expiration for innovative medicines High quality generics Innovation offers Generic improved treatment obsolescence options rendering generics obsol
Slide 2: Strong Fundamentals – Pricing Challenges
Strong Fundamentals – Pricing Challenges United States • Medicaid supplemental rebate, preferred drug lists • Higher co-payments • Medicare drug benefit • Canadian imports • Government investigations and lawsuits Europe • Accelerating growth of generics • Additional regulatory hurdles (e.g. German “
Slide 3: Strategic Investments for Building World Class Key Functions and Sustainable Growth
Strategic Investments for Building World Class Key Functions and Sustainable Growth Phase 3 Phase 2 Innovation Best-in-class Phase 1 Marketing & Sales Integration and cost synergies 1996 1999 2002 2005 3-year 2-year bold 2-year bold cost synergy cycle investment cycle investment cycle 5 FRESCO 2003
Slide 4: Outlook 2004 (barring unforeseen events)
Outlook 2004 (barring unforeseen events) • High single-digit sales growth, ahead of market • Bold R&D investments to ensure innovation lead • Sustain industry leading pipeline • Planned launches of Certican®, myfortic® and Enablex® • Continued strong growth of core brands • Operating income and net