Slide 1: Second Quarter 2007 Webcast
Exhibit 99.1 Second Quarter 2007 Webcast July 26, 2007
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 July 26, 2007, and Alcon does not undertake
Slide 3: Management Presentation
Management Presentation by Cary Rayment Chairman, President & CEO Doug MacHatton Vice President, Investor Relations & Strategic Corporate Communications 3
Slide 4: Business Overview
Business Overview Cary Rayment Chairman, President & CEO 4
Slide 5: Q2 2007 Financial Highlights
Q2 2007 Financial Highlights Q2 07 Q2 06 Growth (dollars in millions, except per share amounts) Global Sales $ 1,471.5 $ 1,310.8 12.3% Constant Currency** 10.0% Net Earnings Reported $ 448.4 $ 465.6 (3.7%) Adjusted* $ 448.4 $ 366.5 22.3% Diluted EPS Reported 1.48 1.50 Adjusted* 1.48 1.18 * Non-GAAP
Slide 6: Q2 YTD 2007 Financial Highlights
Q2 YTD 2007 Financial Highlights YTD 07 YTD 06 Growth (dollars in millions, except per share amounts) Global Sales $ 2,794.2 $ 2,467.9 13.2% Constant Currency** 10.9% Net Earnings Reported $ 794.6 $ 761.3 4.4% Adjusted* $ 815.4 $ 663.8 22.8% Diluted EPS Reported 2.62 2.45 Adjusted* 2.69 2.13 * Non-G
Slide 7: Q2 YTD 2007 Geographic Sales and Growth
Q2 YTD 2007 Geographic Sales and Growth Q2 YTD 2007 Sales by Geography $423.9 +20.9% Emerging Markets 15.1% $1,370.8 +8.2% U.S. 49.1% Developed International 35.8% $999.5 +17.5% (dollars in millions) 7
Slide 8: Pharmaceutical Sales
Pharmaceutical Sales Reported Constant 2007 2006 Growth Currency Q2 $ 633.8 $ 559.5 13.3% 11.1% YTD $ 1,188.3 $ 1,034.6 14.9% 12.8% • Growth in glaucoma franchise supported through core brand development and share gains with Travatan®ZTM and DuoTravTM • Allergy segment benefits from global share gai
Slide 9: Key Brand Development May 2007 YTD U.S. Rx Growth
Key Brand Development May 2007 YTD U.S. Rx Growth Brand Rx Market Growth % Growth % Travatan® + Travatan®ZTM 24% 10% Azopt® 14% 8% Vigamox® 13% 8% Nevanac® 25% 23% Patanol® + PatadayTM 4% 1% TobraDex® 3% 4% Ciprodex® 18% 2% Source: WK Health 9
Slide 10: Surgical Sales
Surgical Sales Reported Constant 2007 2006 Growth Currency Q2 $ 632.4 $ 567.4 11.5% 9.0% YTD $ 1,213.1 $ 1,092.6 11.0% 8.4% • IOLs grew 13.7% due to global growth in AcrySof® IQ and 24.0% growth in premium lenses • Continued growth in the cataract equipment installed base with the Infiniti® platform
Slide 11: Global Growth in Cataract Products
Global Growth in Cataract Products Percent Growth in Cataract Products – June YTD 20% +18.2% Unit Growth Dollar Growth 18% +15.7% 16% 14% +13.2% 12% +10.5% +9.7% 10% +7.9% 8% +6.9% +7.1% 6% 4% 2% 0% ® AcrySof IOLs Viscoelastics Equipment Disposables 11
Slide 12: Consumer Sales
Consumer Sales Reported Constant 2007 2006 Growth Currency Q2 $ 205.3 $ 183.9 11.6% 9.5% YTD $ 392.8 $ 340.7 15.3% 13.2% • CLC growth from share gains in U.S. following competitor recall – U.S. share up 6.0 points since the AMO recall, according to Nielsen • Introduction of OPTI-FREE® RepleniSH® to
Slide 13: Contact Lens Care Share Gains
Contact Lens Care Share Gains Alcon Share of Disinfectants in the U.S. by Week 50 45 2007 40 Percent of U.S. Market 35 30 25 2006 20 15 Acanthamoeba 10 Fusarium EYE Recall BOL Recall 5 0 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 Week Source: AC Nielson 13
Slide 14: Financial Review
Financial Review Doug MacHatton Vice President, Investor Relations & Strategic Corporate Communications 14
Slide 15: Q2 2007 Reported Income Statement Detail
Q2 2007 Reported Income Statement Detail Reported % of Reported % of Q2 07 Sales Q2 06 Sales Gross Profit $ 1,118.2 76.0% $ 985.5 75.2% SG & A 431.5 29.3% 264.8 20.2% R&D 139.9 9.5% 124.3 9.5% Intangible Amortization 10.3 0.7% 20.6 1.6% Operating Income 536.5 36.5% 575.8 43.9% Other Income 15.9 1.0%
Slide 16: Adjusted Q2 2007 Income Statement Detail
Adjusted Q2 2007 Income Statement Detail Reported % of Adjusted % of Q2 07 Sales Q2 06* Sales Gross Profit $ 1,118.2 76.0% $ 985.5 75.2% SG & A 431.5 29.3% 385.8 29.5% R&D 139.9 9.5% 124.3 9.5% Intangible Amortization 10.3 0.7% 20.6 1.5% Operating Income 536.5 36.5% 454.8 34.7% Other Income 15.9 1.0
Slide 17: Q2 YTD 2007 Reported Income Statement Detail
Q2 YTD 2007 Reported Income Statement Detail Reported % of Reported % of Q2 YTD 07 Sales Q2 YTD 06 Sales Gross Profit $ 2,091.9 74.9% $ 1,854.4 75.1% SG & A 848.6 30.4% 651.5 26.4% R&D 273.4 9.8% 243.6 9.8% Intangible Amortization 30.3 1.1% 41.1 1.7% Operating Income 939.6 33.6% 918.2 37.2% Other In
Slide 18: Adjusted Q2 YTD 2007 Income Statement Detail
Adjusted Q2 YTD 2007 Income Statement Detail Adjusted % of Adjusted % of Q2 YTD 07* Sales Q2 YTD 06** Sales Gross Profit $ 2,115.9 75.7% $ 1,854.4 75.1% SG & A 848.6 30.4% 770.5 31.2% R&D 273.4 9.8% 243.6 9.8% Intangible Amortization 21.6 0.7% 41.1 1.7% Operating Income 972.3 34.8% 799.2 32.4% Other
Slide 19: Reported Tax Rate vs. "Base" Rate
Reported Tax Rate vs. “Base” Rate Q2 YTD 07 FY 2006 FY 2005 “Base” Effective Tax Rate* 19.0% 21.0% 25.1% Total Net Impact of (0.4)% (4.4)% (2.5)% “Non-structural” Items Reported Effective Tax Rate 18.6% 16.6% 22.6% * “Base” effective tax rate is a non-GAAP measure presented to give investors a bette
Slide 20: Net Dollars to Shareholders
Net Dollars to Shareholders (dollars in millions) $1,400 $1,316 $1,357 Share Repurchases $1,200 Dividends $1,000 $744 $899 $800 $694 $600 $406 $392 $400 $236 $613 $200 $141 $417 $302 $34 $169 $107 $0 2003 2004 2005 2006 YTD 2007 Dividend 23.0% 28.5% 34.6% 44.8% 45.5% Payout Ratio* Remaining shares a
Slide 21: 2007 Full Year Financial Guidance
2007 Full Year Financial Guidance • Sales range from $5,475 to $5,550 million • Adjusted EPS* range from $5.20 to $5.30 • Excludes charges associated with: – The impairment of the company’s refractive asset – Acquisition and integration of WaveLight AG • Assumes currency exchange rates remain at cur
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Slide 23: Q2 YTD 2007 Non-GAAP Adjustments
Q2 YTD 2007 Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Impairment Non-GAAP Reported Charges Adjusted* Sales $ 2,794.2 $ -- $ 2,794.2 Cost of goods sold 702.3 (24.0) 678.3 Gross profit 2,091.9 24.0 2,115.9 Selling, general and administrative 848.6 -- 848.
Slide 24: Q2 2006 Non-GAAP Adjustments
Q2 2006 Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Patent Lawsuits Non-GAAP Reported Settlement Adjusted* Sales $ 1,310.8 $ -- $ 1,310.8 Cost of goods sold 325.3 -- 325.3 Gross profit 985.5 -- 985.5 Selling, general and administrative 264.8 121.0 385.8 R
Slide 25: Q2 YTD 2006 Non-GAAP Adjustments
Q2 YTD 2006 Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Patent Lawsuits Non-GAAP Reported Settlement Adjusted* Sales $ 2,467.9 $ -- $ 2,467.9 Cost of goods sold 613.5 -- 613.5 Gross profit 1,854.4 -- 1,854.4 Selling, general and administrative 651.5 119.0
Slide 26: Earnings Guidance Non-GAAP Adjustments
Earnings Guidance Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Impairment Non-GAAP Projected* Charges Adjusted** Diluted EPS Guidance – Low $ 5.13 $ 0.07 $ 5.20 Diluted EPS Guidance - High $ 5.23 $ 0.07 $ 5.30 *Projected guidance excludes charges associate