Slide 1: Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing
oS Alcon, Inc. Worldwide Leader in Ophthalmic Research and Manufacturing TRAVATAN. en om
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 21, 2004, and Alcon does not undert
Slide 3: Management Presentation by Cary Rayment and Jacqualyn Fouse
Management Presentation by Cary Rayment President & CEO Jacqualyn Fouse Senior Vice President of Finance & CFO 3
Slide 4: Financial Results
Financial Results (For the quarters and nine months ended September 30, 2004 and 2003) 4
Slide 5: Third Quarter Financial Highlights
Third Quarter Financial Highlights Q3 04 Q3 03 Growth Global Sales $ 958.1 $ 822.7 16.5% Net Earnings $ 194.3 $ 153.1 26.9% Reported EPS* $ 0.62 $ 0.49 26.5% *Diluted earnings per share. (dollars in millions, except per share amounts) 5
Slide 6: September YTD Financial Highlights
September YTD Financial Highlights YTD 04 YTD 03 Growth Global Sales $ 2,960.9 $ 2,555.2 15.9% Net Earnings $ 684.5 $ 461.5 48.3% Adjusted Net Earnings $ 626.9 $ 461.5 35.8% Reported EPS* $ 2.20 $ 1.49 47.7% Adjusted EPS* $ 2.02 $ 1.49 35.6% *Diluted earnings per share for both reported and adjusted
Slide 7: Reported vs. Adjusted Net Earnings
Reported vs. Adjusted Net Earnings Q3 04 Q3 03 YTD 04 YTD 03 Reported Net Earnings $ 194.3 $ 153.1 $ 684.5 $ 461.5 Tax Settlements and Credits -- -- (57.6) -- Adjusted Net Earnings* $ 194.3 $ 153.1 $ 626.9 $ 461.5 *Adjusted net earnings helps investors better compare results of operations from 2004
Slide 8: Reported vs. Adjusted Earnings Per Share
Reported vs. Adjusted Earnings Per Share Q3 04 Q3 03 YTD 04 YTD 03 Reported Diluted EPS $ 0.62 $ 0.49 $ 2.20 $ 1.49 Tax Settlements and Credits -- -- (0.18) -- Adjusted Diluted EPS* $ 0.62 $ 0.49 $ 2.02 $ 1.49 *Adjusted diluted EPS helps investors better compare results of operations from 2004 and 2
Slide 9: Third Quarter Income Statement Detail
Third Quarter Income Statement Detail % of % of Q3 04 Sales Q3 03 Sales Gross Profit $ 709.5 74.1% $ 594.4 72.2% SG & A $ 310.1 32.4% $ 265.4 32.3% Research & Development $ 101.8 10.6% $ 87.4 10.6% (dollars in millions) 9
Slide 10: September YTD Income Statement Detail
September YTD Income Statement Detail % of % of YTD 04 Sales YTD 03 Sales Gross Profit $2,148.3 72.6% $1,806.5 70.7% SG & A $ 913.2 30.8% $ 820.7 32.1% Research & Development $ 282.0 9.5% $ 254.9 10.0% Effective Tax Rate* 30.0% 30.4% *YTD 2004 excludes the impact of tax settlements and tax credits o
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights 9/30/04 12/31/03 Short and Long Term Borrowings $ 891.5 $ 1,410.3 Cash and Cash Equivalents $ 880.2 $ 1,086.0 Consolidated S/H Equity $ 1,936.5 $ 1,591.5 A/R Change (From 12/31/03) 12.2% N/A Inventory Change (From 12/31/03) (5.8%) N/A (dollars in millions) 11
Slide 12: Geographic and Product Line Sales
Geographic and Product Line Sales 12
Slide 13: Geographic Sales Breakdown
Geographic Sales Breakdown YTD 2004 YTD 2003 26.4% 25.0% 51.8% 53.7% 7.6% 7.5% 14.2% 13.8% United States United States Europe Europe Japan Japan Rest of World Rest of World 13
Slide 14: Global Product Line Sales
Global Product Line Sales YTD 2004 YTD 2003 45.3% 40.4% 45.4% 39.5% 14.3% 15.1% Surgical Surgical Pharmaceutical Pharmaceutical Consumer Consumer 14
Slide 15: Pharmaceutical Sales
Pharmaceutical Sales $1,400 + 18.6% $1,200 $1,000 $1,196.0 $800 $1,008.3 $600 $400 + 20.1% $200 $313.5 $376.4 $0 Q3 2003 Q3 2004 YTD 2003 YTD 2004 (dollars in millions) 15
Slide 16: Surgical Sales
Surgical Sales $1,600 $1,400 + 15.7% $1,200 $1,341.5 $1,000 $1,159.4 $800 $600 + 15.2% $400 $200 $380.6 $438.5 $0 Q3 2003 Q3 2004 YTD 2003 YTD 2004 (dollars in millions) 16
Slide 17: Consumer Products Sales
Consumer Products Sales $500 + 9.3% $400 $423.4 $387.5 $300 $200 + 11.4% $100 $128.6 $143.2 $0 Q3 2003 Q3 2004 YTD 2003 YTD 2004 (dollars in millions) 17
Slide 18: 2004 Outlook
2004 Outlook Alcon :;
Slide 19: 2004 Full Year Financial Guidance: Sales
2004 Full Year Financial Guidance • Sales range from $3.85 to $3.90 billion – Healthy global growth across major product lines – Share gains from recent product launches – Less currency benefit – Ciloxan® expiration 19
Slide 20: 2004 Full Year Financial Guidance: EPS
2004 Full Year Financial Guidance • EPS range from $2.52* to $2.55* – Mix improvement from new products – Leveraging operating infrastructure – Increased promotional and R&D activity – Ciloxan® expiration *Excludes impact of tax benefits recorded in Q2 2004. 20
Slide 21: Reported vs. Adjusted Earnings Guidance
Reported vs. Adjusted Earnings Guidance Lower Higher EPS Guidance - Reported Basis $ 2.70 $ 2.73 Tax Settlements and Credits (0.18) (0.18) EPS Guidance – Adjusted Basis* $ 2.52 $ 2.55 *Adjusted EPS guidance helps investors better compare results of operations from 2004 and 2003. 21
Slide 22: Alcon, Inc.
Alcon, Inc. \X/orldwide Leader y in Ophthalmic Beseayen and Manufacturing