Slide 1: Alcon, Inc. 2003 3rd Quarter Conference Call
Alcon, Inc. 2003 3rd Quarter Conference Call
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 October 23, 2003, and Alcon does not undert
Slide 3: Management Presentation by
Management Presentation by Tim Sear Chairman, President & CEO Jacqualyn Fouse Senior Vice President of Finance & CFO
Slide 4: Financial Results
Financial Results (For the quarter and year-to-date ending September 30, 2003 and 2002)
Slide 5: Third Quarter Financial Highlights
Third Quarter Financial Highlights Q3 03 Q3 02 Growth Global Sales $ 822.7 $ 743.9 10.6% Net Earnings $ 153.1 $ 125.1 22.4% Reported EPS* $ 0.49 $ 0.41 19.5% *Diluted (dollars in millions, except per share amounts)
Slide 6: Year to Date Financial Highlights
Year to Date Financial Highlights YTD 03 YTD 02 Growth Global Sales $ 2,555.2 $ 2,259.9 13.1% Net Earnings $ 461.5 $ 381.9 20.8% Proforma Net Earnings $ 461.5 $ 389.7 18.4% Reported EPS* $ 1.49 $ 1.27 17.3% *Diluted (dollars in millions, except per share amounts)
Slide 7: Reported vs. Proforma Net Earnings
Reported vs. Proforma Net Earnings Q3 03 Q3 02 YTD 03 YTD 02 Reported Net Earnings $ 153.1 $ 125.1 $ 461.5 $ 381.9 Deferred Comp Conversion -- -- -- 22.6 IPO Net Interest Expense -- -- -- (9.5) Tax Impact of Above Items -- -- -- (5.3) Proforma Net Earnings $ 153.1 $ 125.1 $ 461.5 $ 389.7 (dollars in
Slide 8: Third Quarter Income Statement Detail
Third Quarter Income Statement Detail % of % of Q3 03 Sales Q3 02 Sales Gross Profit $ 594.4 72.2% $ 529.4 71.2% SG & A $ 265.4 32.3% $ 238.6 32.1% Research & Development $ 87.4 10.6% $ 77.9 10.5% Effective Tax Tate 30.4% N/A 32.6% N/A (dollars in millions)
Slide 9: Year to Date Income Statement Detail
Year to Date Income Statement Detail % of % of YTD 03 Sales YTD 02 Sales $1,806.5 70.7% $1,600.5 70.8% Gross Profit SG & A $ 820.7 32.1% $ 737.8 32.6% Research & Development $ 254.9 10.0% $ 227.4 10.1% Effective Tax Tate 30.4% N/A 32.5% N/A (dollars in millions)
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights 9/30/03 12/31/02 Short and Long Term Borrowings $ 1,714.2 $ 1,876.7 Cash and Cash Equivalents $ 1,195.1 $ 967.9 Net Debt $ 519.1 $ 908.8 Consolidated S/H Equity $ 1,415.6 $ 974.3 A/R Change 16.3% N/A Inventory Change 8.8% N/A (dollars in millions)
Slide 11: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Constant Currency Change in Accounts Receivable Balance 09/30/2003 12/31/2002 Growth Reported Accounts Receivable 636.7 547.5 16.3% Currency Impact YTD 9/30/03 (36.5) - Constant Currency Accounts Receivable 600.2 547.5 9.6% Constant Currency Change in Inventories
Slide 12: Geographic and Product Line Sales
Geographic and Product Line Sales
Slide 13: Geographic Sales Breakdown
Geographic Sales Breakdown YTD 2003 YTD 2002 25.0% 22.0% 7.5% 8.6% 53.7% 13.8% 55.3% 14.1% United States United States Europe Europe Japan Japan Rest of World Rest of World
Slide 14: Product Line Sales - Global
Product Line Sales - Global YTD 2003 YTD 2002 37.3% 39.5% 16.1% 15.1% 46.6% 45.4% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer
Slide 15: Product Line Sales – U.S. vs. Non-U.S.
Product Line Sales – U.S. vs. Non-U.S. YTD 2003 U.S. YTD 2003 Non-U.S. 47.0% 30.7% 15.9% 14.6% 53.4% 38.4% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer
Slide 16: Pharmaceutical Sales
Pharmaceutical Sales 1200 + 19.8% 1000 $1,008.3 800 $841.8 600 + 11.6% 400 200 $313.5 $280.8 0 Q3 2002 Q3 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 17: Pharmaceutical Sales Detail
Pharmaceutical Sales Detail YTD YTD Q3 03 Q3 02 Growth 03 02 Growth Infection/ Inflammation 122.4 109.9 11.4% 388.6 335.0 16.0% Glaucoma 106.8 87.2 22.5% 314.7 257.1 22.4% Allergy 54.1 50.6 6.9% 230.1 185.5 24.0% Otic 35.7 36.3 -1.7% 98.0 76.3 28.4% (dollars in millions)
Slide 18: Surgical Sales
Surgical Sales 1400 + 10.1 % 1200 1000 $1,159.4 $1,053.3 800 600 + 10.5 % 400 200 $344.5 $380.6 0 Q3 2002 Q3 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 19: Surgical Sales Detail
Surgical Sales Detail YTD YTD Q3 03 Q3 02 Growth 03 02 Growth IOL’s 118.6 104.3 13.7% 362.7 319.4 13.6% Cat/Vit 245.3 222.3 10.3% 742.4 676.8 9.7% Refractive 16.7 17.9 -6.7% 54.3 57.1 -4.9% (dollars in millions)
Slide 20: Consumer Eye Care Sales
Consumer Eye Care Sales 450 400 + 6.2 % 350 $387.5 300 $364.8 250 200 + 8.4 % 150 100 $118.6 $128.6 50 0 Q3 2002 Q3 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 21: Consumer Sales Detail
Consumer Sales Detail YTD YTD Q3 03 Q3 02 Growth 03 02 Growth Contact Lens 72.1 68.3 5.6% 214.6 207.1 3.6% Disinfectants Artificial Tears 29.1 24.0 21.3% 87.3 75.3 15.9% Other 27.4 26.3 4.2% 85.6 82.4 3.9% (dollars in millions)
Slide 22: 2003 Outlook
2003 Outlook
Slide 23: Financial Guidance
Financial Guidance 2003 Full Year • Sales range from $3.37 to $3.39 billion – Q4 Sales range from $815 to $835 million • EPS range from $1.88 to $1.91 – Q4 EPS range from $0.39 to $0.42
Slide 24: Alcon, Inc.
Alcon, Inc. Worldwide Leader J in Ophthalmic Research and Manufacturing