Slide 1: 2Q21 Earnings Presentation
2Q21 Earnings Presentation August 18, 2021 1
Slide 2: Legal disclaimers
Legal disclaimers 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 stat
Slide 3: Agenda
Agenda 01 Key topics 02 IFRS results 03 Core results 04 Outlook ‹#›
Slide 4: Key topics
Key topics 4
Slide 5: Key topics
Key topics • Highest quarterly sales and earnings since spin-off, driven by strong US market recovery, new innovation and solid commercial execution • Surgical franchise outperformed the market and Vision Care franchise returned to growth • All sales categories posted growth vs. 2019, driven by mark
Slide 6: 2Q21 select financial highlights
2Q21 select financial highlights Top line Profitability Core EPS Cash generation 1 1 1 2Q21 sales of $2.1B, up +11% Core operating margin up 160 2Q21 core diluted EPS of $0.56, 1H21 cash from operations of cc1 vs. 2Q19, with growth across bps vs. 2Q19 up 9 cents or 19% vs. 2Q19 $542 million all five
Slide 7: IFRS results
IFRS results 7
Slide 8: 2Q21 IFRS results
2Q21 IFRS results • +75% vs. 2Q20 • +12% vs. 2Q19 8
Slide 9: 1H21 IFRS results
1H21 IFRS results • +33% vs. 1H20 • +10% vs. 1H19 9
Slide 10: Core results
Core results
Slide 11: 2Q21 core results
2Q21 core results1 • +69% cc vs. 2Q20 • FX vs. 2Q20: +70 bps • +11% cc vs. 2Q19 • FX vs. 2Q19: (10) bps 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 11
Slide 12: 1H21 core results
1H21 core results1 • +29% cc vs. 1H20 • FX vs. 1H20: +50 bps • +9% cc vs. 1H19 • FX vs. 1H19: (20) bps 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 12
Slide 13: 2Q21 product mix
2Q21 product mix1 Vision Care $0.9B (42%) Surgical $1.2B (58%) Ocular health (40%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Contact lens solution Glaucoma eye drops Consumables (51%) Dedicated consumables $2.1 billion Contact lenses (60%) Custom s
Slide 14: Surgical growth in all categories
2Q21 vs. 2Q19 Surgical growth in all categories Net Sales (USD $M) (USD) (CC)1 $1,206 15% 14% • Ongoing roll-out of PanOptix and Vivity driving $1,051 + market share 29% 29% • Penetration growth of ATIOLs • Consumables growth across procedure types + (cataract, vit-ret and refractive) despite varied
Slide 15: Vision Care growth driven by new product launches
2Q21 vs. 2Q19 Vision Care growth driven by new Net Sales (USD $M) (USD) (CC)1 product launches $888 9% 8% $812 • Strong US growth driven by new product launches + • Global contact lens share up second quarter in a row • Strong demand for Precision1 for Astigmatism 9% 6% • Soft market conditions in i
Slide 16: Core operating margin bridge 2Q21 vs. 2Q19
2Q21 vs. 2Q19 Core operating margin1 bridge % of net sales 18.3 18.2 Key drivers • SG&A: operating leverage and reduced investments in COVID-impacted markets 1. Core operating margin is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 16
Slide 17: Core operating margin bridge 1H21 vs. 1H19
1H21 vs. 1H19 Core operating margin1 bridge % of net sales 18.3 18.1 Key drivers • SG&A: operating leverage and reduced investments in COVID-impacted markets 1. Core operating margin is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 17
Slide 18: Cash flow and balance sheet highlights
Cash flow and balance sheet highlights Cash and cash equivalents $1,366 million 1H21 cash flows from operations $542 million 1H21 free cash flow1 $320 million Payment of $355 million for US commercialization rights of Simbrinza Dividend payment of $54 million Capex $222 million Investing in new cont
Slide 19: 2021 Outlook
2021 Outlook
Slide 20: 2021 Outlook
2021 Outlook 2019 2020 2021 outlook 2021 outlook May 2021 August 2021 Net sales $7.4 billion $6.8 billion $7.8 - $8.0 billion $8.0 - $8.2 billion Core operating margin1 17.2% 11.7% approximately 17% approximately 17.5% Core diluted earnings per share1 $1.89 $1.04 $1.85 - $1.95 $2.00 - $2.10 Assumpti
Slide 21: Serving customers, doctors and patients
Serving customers, doctors and patients See Brilliantly 21
Slide 22: Appendix
Appendix 22 ‹#›
Slide 23: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 24: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended June 30, 2021 Amortization of IFRS certain intangible Separation Transformation Other Core ($ millions except earnings per share) results assets(1) Impairments(2) costs(3) costs(4) items(6) results Gross profit 1,220 128 — — — — 1,348
Slide 25: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended June 30, 2020 Amortization of IFRS certain intangible Separation Transformation Other Core ($ millions except (loss) per share) results assets(1) Impairments(2) costs(3) costs(4) items(6) results Gross profit 345 250 41 4 — 14 654 Sel
Slide 26: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended June 30, 2019 Amortization of IFRS certain intangible Separation Transformation Other Core ($ millions except (loss)/earnings per share) results assets(1) Impairments(2) costs(3) costs(4) items(6) results Gross profit 947 252 — 3 — 2
Slide 27: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Six months ended June 30, 2021 Amortization of IFRS certain intangible Separation Transformation Other Core ($ millions except earnings per share) results assets(1) Impairments(2) costs(3) costs(4) items(6) results Gross profit 2,251 253 45 — — — 2,549
Slide 28: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Six months ended June 30, 2020 Amortization of IFRS certain intangible Separation Transformation Other Core ($ millions except (loss)/earnings per share) Results assets(1) Impairments(2) costs(3) costs(4) items(6) results Gross profit 1,217 502 57 7 — 4
Slide 29: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Six months ended June 30, 2019 Amortization of IFRS certain intangible Separation Transformation Legal Other Core ($ millions except (loss)/earnings per share) Results assets(1) Impairments(2) costs(3) costs(4) items(5) items(6) results Gross profit 1,7
Slide 30: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results 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. Separation costs are expected to be incurred ov
Slide 31: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Explanatory footnotes to IFRS to core reconciliation tables (con't) 7. For the three months ended June 30, 2021, total tax adjustments of $26 million include tax associated with operating income core adjustments and discrete tax items. Tax associated wi
Slide 32: Net sales
Net sales 2021 compared to 2020 2021 compared to 2019 Three months ended June 30 Change % Three months ended June 30 Change % ($ millions unless indicated otherwise) 2021 2020 $ cc(1) 2019 $ cc(1) Surgical Implantables 387 176 120 113 300 29 29 Consumables 620 320 94 87 588 5 4 Equipment/other 199 1
Slide 33: Net sales
Net sales 2021 compared to 2020 2021 compared to 2019 Six months ended June 30 Change % Six months ended June 30 Change % ($ millions unless indicated otherwise) 2021 2020 $ cc(1) 2019 $ cc(1) Surgical Implantables 731 486 50 46 585 25 25 Consumables 1,155 839 38 33 1,139 1 — Equipment/other 397 261
Slide 34: Reconciliation of free cash flow
Reconciliation of free cash flow The following is a summary of free cash flow for the six months ended June 30, 2021, 2020 and 2019, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2021 2020 2019 Net cash flows from
Slide 35: Alcon
Alcon SEE BRILLIANTLY