Slide 1: 1Q19 Trading Update
1Q19 Trading Update May 16, 2019 1
Slide 2: Legal Disclaimers
Legal Disclaimers Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “i
Slide 3: Agenda
Agenda Highlights Select financial results 2019 guidance 3
Slide 4: Highlights
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Slide 5: Successful spin-off
Successful spin-off • Alcon became an independent public company on April 9, 2019 and started trading under the ticker ALC • Swiss SIX exchange and the NYSE listing • Alcon is domiciled in Switzerland • Included in 14 global and regional indices 5
Slide 6: Alcon at a Glance
Alcon at a Glance $7b $23b sales market favorable market trends with significant opportunities growing eye care device leader growing at 4% to grow and expand #1 or #2 140+ in all categories within countries served by over strong & experienced Surgical & Vision Care 20,000 employees management team
Slide 7: Strong mega-trends
Strong mega-trends Myopia prevalence is Aging population Increasing wealth growing; increased Innovation improving with growing eye care and growth from screen time and mobile the quality of eye care needs emerging economies device use is impacting vision Population over age 60 Patients have more Mi
Slide 8: Our five-year strategy sets us up for sustainable and profitable growth
Our five-year strategy sets us up for sustainable and profitable growth ... Maximize the potential of near-term portfolio by growing key products Accelerate innovation and deliver next wave of technologies Capture opportunities to expand markets and pursue adjacencies Support new business models to
Slide 9: Advancing our innovation agenda
Advancing our innovation agenda PowerVision iLux and NGenuity • New accommodating AT-IOL technology • iLux: Device for treating Meibomian Gland • Fluid filled lens uses natural contraction of Dysfunction (MBG), a leading cause of dry eye eye muscles • Advancing development of potentially • NGenuity:
Slide 10: Select Financial Results
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Slide 11: Global sales in 2018
Diversified portfolio across businesses and geographies Global sales in 2018 Vision Care $3.1B Surgical $4.0B U.S. $2.9B 16% Implantables 27% 41% Contact Lenses $7.1B $7.1B 17% 31% Consumables Ocular Health 59% 9% Equipment / Other International $4.2B Numbers are rounded for presentation purposes 11
Slide 12: Global sales in 1Q19
Diversified portfolio across businesses and geographies Global sales in 1Q19 Vision Care $0.8B Surgical $1.0B U.S. $0.8B 16% 28% Implantables 41% Contact Lenses $1.8B 31% $1.8B 16% Consumables Ocular Health 59% 9% Equipment/ Other International $1.0B Numbers are rounded for presentation purposes 12
Slide 13: 1Q19 details by franchise and product category
1Q19 details by franchise and product category Surgical Vision Care Implantables Contact Lenses 30% 65% • Daily lenses • Monofocal Intra-ocular lenses • Reusable lenses • Advanced technology IOLs • Cosmetic lenses Consumables Ocular Health 55% • Dedicated consumables 35% • Dry eye products • Custom
Slide 14: 1Q19 net sales at a glance
1Q19 net sales at a glance Net Sales (USD $M) $1,779 $1,777 • Flat reported net sales vs prior year • +4%1 constant-currency growth • -400 bps foreign currency impact due to the strengthening US dollar 1Q18 1Q19 1Constant currencies (cc) are a non-IFRS measure. Growth in constant currency (cc) is ca
Slide 15: Surgical sales
Surgical sales Net Sales (USD $M) (USD) (CC)1 $977 $1,000 +2% +7% • Strong demand for AT-IOLs, primarily + driven by international sales of PanOptix $279 $285 +2% +8% • Consumable pull-through from next gen equipment + • Innovation in smaller gauge instruments $541 $551 +2% +6% • Core capital equipm
Slide 16: Vision Care sales
Vision Care sales Net Sales (USD $M) (USD) (CC)1 $802 $777 -3% +1% • Continued demand for DT1 lenses + • Double digit growth in U.S., APAC, Japan $509 $498 -2% +1% • Strong Systane performance driven by continued + rollout and demand for Systane Complete • Legacy lens category slightly down $293 $27
Slide 17: Core operating margin bridge
Core operating margin bridge1 1Q19 vs 1Q18 (% of sales) 19.2% 1.3 17.7% 0.7 0.5 1Q18 SAP R&D Other 1Q19 1 Core results are a non-IFRS measure. Refer to the appendix for additional information, including a reconciliation for such core results to the most directly comparable measures presented in acco
Slide 18: 2019 Guidance
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Slide 19: Full-year 2019 guidance
Full-year 2019 guidance Full year 2019 Sales growth (1) 3% – 5% Core operating margin (2) 17% - 18% Core effective tax rate (3) 17% - 19% 1. Constant currency sales growth (cc) is a non-IFRS measure. Growth in constant currency (cc) is calculated by translating the current year’s foreign currency it
Slide 20: Summary
Summary • Organization ready to operate as independent company Alcon is • Industry tailwinds from strong megatrends well • Balanced cash pay and reimbursement markets positioned • Robust product pipeline and improving product flow • Positive growth in all categories of Surgical Solid top line growth
Slide 21: Appendix
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Slide 22: Non-IFRS measures
Non-IFRS measures Alcon uses certain non-IFRS metrics when measuring performance, especially when measuring current period results against prior periods, including core results and constant currencies. Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may no
Slide 23: Reconciliation of IFRS to Core Results
Reconciliation of IFRS to Core Results In millions 1Q19 1Q18 % of sales 1Q19 1Q18 IFRS Operating ($48) $73 IFRS Operating margin (2.7%) 4.1% (loss)/income Add: Amortization of certain $255 $253 intangible assets (1) Legal items (2) $32 $9 Other Items (3) $75 $7 Core Operating $314 $342 Core Operatin
Slide 24: Alcon
Alcon SEE BRILLIANTLY