Slide 1: 3Q21 Earnings Presentation
3Q21 Earnings Presentation November 10, 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 3
Slide 4: Key topics
Key topics Alcon
Slide 5: Key topics
Key topics • Strong growth driven by innovation, commercial execution and market recovery; all sales categories in both Surgical and Vision Care grew over 2019 • Growing faster than the market; stand to capture an outsized benefit as markets recover • Expanding our presence in surgical glaucoma with
Slide 6: 3Q21 select financial highlights
3Q21 select financial highlights Top line Profitability Core EPS Cash generation 1 1 1 Third party sales Core operating margin Core diluted EPS Free cash flow 3Q21 $2,084M 3Q21 17.7% 3Q21 $0.54 9M21 $578M 3Q20 $1,818M 3Q20 15.3% 3Q20 $0.39 9M20 $115M 3Q19 $1,841M 3Q19 17.4% 3Q19 $0.46 9M19 $260M 1 3
Slide 7: Expanding Alcon's leadership in clinic-to-OR connectivity with SMARTCataract
Expanding Alcon's leadership in clinic-to- OR connectivity with SMARTCataract • Comprehensive surgical cloud-based platform designed specifically for surgical ophthalmic practices • Furthers leadership in clinic-to-OR integration with image- guided technologies and cloud-based planning • SMARTCatara
Slide 8: Alcon is expanding in the surgical glaucoma market with intended acquisition of Ivantis
Alcon is expanding in the surgical glaucoma market with intended acquisition of Ivantis nd 1 • Glaucoma is the 2 largest cause of blindness after cataracts and impacts 75M+ people globally • Minimally-invasive glaucoma surgery (MIGS) procedure performed in combination with cataract procedure (combo-
Slide 9: Safety & efficacy, and financial considerations
Safety & efficacy, and financial considerations • Strong safety and efficacy profile evidenced by clinical study data on Hydrus® Microstent • Five year pivotal data, the longest continuous follow-up of a MIGS device • Compelling effectiveness and sustained treatment duration ◦ 65% of patients medica
Slide 10: IFRS results
IFRS results Alcon
Slide 11: IFRS results 3Q21 9M21
IFRS results Worldwide net sales Operating margin EPS $2,084M 1.0% $0.00 $1,841M $1,818M 3Q21 (1.0%) ($0.14) ($0.30) (7.1%) 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 Worldwide net sales Operating margin EPS 6.5% $0.48 $6,088M $5,481M $4,838M 9M21 (2.2%) (12.9%) ($1.16) ($1.28) 9M19 9M20 9M21 9M19
Slide 12: IFRS operating margin bridge
IFRS operating margin bridge % of net sales 1.7 5.8 0.2 1.2 1.0 3Q21 (5.5) (0.2) (1.0) 3Q19 GM SG&A R&D Other FX 3Q21 income/expense 1.9 2.4 6.7 6.5 6.5 (0.2) (1.9) 9M21 (2.2) 9M19 GM SG&A R&D Other FX 9M21 income/expense 12
Slide 13: Core results
Core results Alcon
Slide 14: 3Q21 core results
1 3Q21 core results Worldwide net sales Core operating margin Core diluted EPS 17.7% $0.54 17.4% $2,084M 15.3% $0.46 $1,841M $1,818M $0.39 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 +14% cc vs. 3Q20 FX vs. 3Q20: +40 bps +13% cc vs. 3Q19 FX vs. 3Q19: (30) bps 1. Core operating margin, core diluted
Slide 15: 9M21 core results
1 9M21 core results Worldwide net sales Core operating margin Core diluted EPS 18.0% $1.60 $6,088M 17.2% $1.43 $5,481M $4,838M 10.4% $0.63 9M19 9M20 9M21 9M19 9M20 9M21 9M19 9M20 9M21 +23% cc vs. 9M20 FX vs. 9M20: +50 bps +10% cc vs. 9M19 FX vs. 9M19: (20) bps 1. Core operating margin, core diluted
Slide 16: 3Q21 product mix
1 3Q21 product mix Vision Care $0.9B (44%) Surgical $1.2B (56%) Ocular health (39%) 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 (61%) Custom
Slide 17: Surgical growth in all categories
3Q21 vs. 3Q19 Surgical growth in all categories Net Sales (USD $M) (USD) (CC) 1 14% 14% • Ongoing launch of Vivity and continued demand $1,161 + for PanOptix $1,019 • Penetration growth of ATIOLs 31% 32% $375 $287 • Growth in cataract equipment, including phaco, Active Sentry handpiece, Argos biomet
Slide 18: Vision Care growth in all categories
3Q21 vs. 3Q19 Net Sales Vision Care growth in all categories (USD $M) (USD) (CC)1 $923 12% 12% • Strong demand for Precision1 and Precision1 for + Astigmatism $822 • Continued growth from Dailies Total1 • Expanding Total premium brand with two new 8% 7% products; favorable customer feedback $562 $51
Slide 19: Core operating margin bridge 3Q21 vs. 3Q19
3Q21 vs. 3Q19 1 Core operating margin bridge % of net sales 1.2 18.0 17.7 17.4 (0.1) (0.4) (0.3) (0.1) 3Q19 GM SG&A R&D Other FX 3Q21 income/expense Key drivers • Operating leverage as sales growth outpaces increases in SG&A 1. Core operating margin is a non-IFRS measure. An explanation of non-IFRS
Slide 20: Core operating margin bridge 9M21 vs. 9M19
9M21 vs. 9M19 1 Core operating margin bridge % of net sales 1.5 18.2 18.0 17.2 — (0.4) (0.1) (0.2) 9M19 GM SG&A R&D Other FX 9M21 income/expense Key drivers • Operating leverage as sales growth outpaces increases in SG&A 1. Core operating margin is a non-IFRS measure. An explanation of non-IFRS meas
Slide 21: Cash flow and balance sheet highlights
Cash flow and balance sheet highlights Cash and cash equivalents $1,565 million 9M21 cash flows from operations $958 million 1 9M21 free cash flow $578 million Capex $380 million Investing in new contact lens manufacturing lines Debt $4,109 million No financial covenants 1. Free cash flow is a non-I
Slide 22: Appendix
Appendix 22 ‹#›
Slide 23: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 24: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended September 30, 2021 Amortization of certain IFRS intangible Separation Transformation Legal Other Core (1) (2) (3) (4) (5) (7) ($ millions except earnings per share) results assets Impairments costs costs items items results Gross prof
Slide 25: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended September 30, 2020 Amortization Post of certain employ- IFRS intangible Separation Transformation ment Other Core (1) (2) (3) (4) (6) (7) ($ millions except (loss)/earnings per share) results assets Impairments costs costs benefits it
Slide 26: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Three months ended September 30, 2019 Amortization of IFRS certain intangible Separation Transformation Other Core (1) (3) (4) (7) ($ millions except (loss)/earnings per share) results assets costs costs items results Gross profit 950 252 4 — (31) 1,175
Slide 27: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Nine months ended September 30, 2021 Amortization of certain IFRS intangible Separation Transformation Legal Other Core (1) (2) (3) (4) (5) (7) ($ millions except earnings per share) results assets Impairments costs costs items items results Gross profi
Slide 28: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Nine months ended September 30, 2020 Amortization of certain Post- IFRS intangible Separation Transformation employment Other Core (1) (2) (3) (4) (6) (7) ($ millions except (loss)/earnings per share) Results assets Impairments costs costs benefits item
Slide 29: Reconciliation of IFRS results to core results
Reconciliation of IFRS results to core results Nine months ended September 30, 2019 Amortization of IFRS certain intangible Separation Transformation Legal Other Core (1) (3) (4) (5) (7) ($ millions except (loss)/earnings per share) Results assets costs costs items items results Gross profit 2,749 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
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) (8) For the three months ended September 30, 2021, total tax adjustments of $82 million include tax associated with operating income core adjustments and discrete tax items. Tax associa
Slide 32: Net sales
Net sales 2021 compared to 2020 2021 compared to 2019 Three months ended Three months ended September 30 Change % September 30 Change % ($ millions unless indicated otherwise) 2021 2020 $ cc (1) 2019 $ cc (1) Surgical Implantables 375 290 29 29 287 31 32 Consumables 594 526 13 12 571 4 3 Equipment/o
Slide 33: Net sales
Net sales 2021 compared to 2020 2021 compared to 2019 Nine months ended September 30 Change % Nine months ended September 30 Change % ($ millions unless indicated otherwise) 2021 2020 $ cc (1) 2019 $ cc (1) Surgical Implantables 1,106 776 43 40 872 27 28 Consumables 1,749 1,365 28 25 1,710 2 1 Equip
Slide 34: Reconciliation of free cash flow
Reconciliation of free cash flow The following is a summary of free cash flow for the nine months ended September 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
Slide 35: Alcon
Alcon SEE BRILLIANTLY