Novartis Ag · SIX:NOVN
Novartis — Q3 2008 Earnings Presentation
73 slides from Novartis's earnings presentation, Oct 20, 2008
Slide 1: Nine Months / Third Quarter 2008 Results
Novartis Group Nine Months / Third Quarter 2008 Results Investor Conference Call Presentation October 20, 2008
Slide 2: Forward-looking statements
These materials contain certain forward-looking statements relating to the Group's business, which can be identified by the use of forward-looking terminology such as "outlook", "expected", "will", "potential", "pipeline", or similar expressions, or by express or implied discussions regarding potent
Slide 3: Agenda
Agenda Overview D. Vasella Pharmaceuticals J. Jimenez Other Divisions and Group Leadership D. Vasella Financials R. Breu Outlook D. Vasella
Slide 4: Novartis sustained strong growth in 2008
Novartis sustained strong growth in 20081 Building momentum: New growth phase in Pharmaceuticals and contributions from all businesses New Group management structure and promotion of several leaders to new senior management positions Strengthening the business portfolio: first step of Alcon ac
Slide 5: 9M 2008 continuing operations – sustained strong performance
9M 2008 continuing operations1 – sustained strong performance Group key figures 9M 2007 9M 2008 Change Change in USD m in USD m in % USD in % LC2 Net sales 28 141 31 382 +12 +4 Operating income3 5 884 7 284 +24 Net income3 5 609 6 656 +19 EPS (USD) 2.40 2.93 +22 Number of associates 98 418 97 201 -1
Slide 6: New growth phase in Pharmaceuticals
New growth phase in Pharmaceuticals Sales growth in USD Op. Inc. growth in USD Actual results 9M 2008 (USD, bn) % growth 9M 2008 vs. 9M 2007 Sales1 Op. Inc.1 in USD in LC Pharma 19.90 6.02 Pharma 11 +4 17 Sandoz 5.75 0.88 Sandoz 11 +1 12 NCH 4.46 0.86 NCH 11 +4 18 V&D 1.27 0.05 V&D 20 +15 Not meanin
Slide 7: Q3 2008 continuing operations – solid business expansion
Q3 2008 continuing operations1 – solid business expansion and productivity gains Group key figures Q3 2007 Q3 2008 Change Change in USD m in USD m in % USD in % LC Net sales 9 613 10 747 +12 +7 Operating income2 1 452 2 335 +61 Net income2 1 574 2 082 +32 EPS (USD) 0.68 0.92 +35 1 Continuing operati
Slide 8: All regions deliver as US returns to growth
All regions deliver as US returns to growth Group1 Q3 2008 net sales in USD bn; growth in local currency Rest of Americas +8% Asia/Australia/Africa 0.9 +8% 1.8 Europe 4.6 +7 % 3.4 US +4% 1 Continuing operations, with figures for Group excluding Medical Nutrition and Gerber 8 | Novartis 9M 2008 Resul
Slide 9: Consistent strategy to sustain profitable growth and mitigate risk
Consistent strategy to sustain profitable growth and mitigate risk 1 Selectively strengthen existing franchises of business portfolio addressing specific customer needs 2 Step up innovation focusing on Priorities differentiated products 3 Expand in high-growth markets 4 Improve organizational effici
Slide 10: Agenda
Agenda Overview D. Vasella Pharmaceuticals J. Jimenez Other Divisions and Group Leadership D. Vasella Financials R. Breu Outlook D. Vasella
Slide 11: Key messages Novartis Pharma
Key messages Novartis Pharma 2007 returning to strong growth All regions supporting solid Q3 results • Third quarter net sales up +14% in USD (+9% in LC) - Nine-month net sales up +11% in USD (+4% LC) • US returned to growth in Q3: up +9% • Europe and other regions continue to deliver solid perfor
Slide 12: Q3 2008 sales and operating income ahead of 2007
Q3 2008 sales and operating income ahead of 2007 Growth vs. 2007 Q3 USD m in USD in LC1 Net sales 6 709 +14% +9% Operating income 1 743 +13% Return on net sales (ROS)2 26.0% -0.2 ppt Associates3 53 418 -3% 1 Local currencies 2 Adjusted ROS is 32.0% (excl. exceptional items and amortization of intang
Slide 13: Nine-month 2008 results show improving growth
Nine-month 2008 results show improving growth Growth vs. 2007 9M USD m in USD in LC1 Net sales 19 901 +11% +4% Operating income 6 017 +17% Return on net sales (ROS)2 30.2% +1.3 ppt Associates3 53 418 -3% 1 Local currencies 2 Adjusted ROS is 32.4% (excl. exceptional items and amortization of intangib
Slide 14: Novartis Pharma's sales are geographically diversified
Novartis Pharma’s sales are geographically diversified around the world … ILLUSTRATIVE EXAMPLES Geographic diversification of sales (% of Total US Dollars) 100% 80% Rest of World 60% “Top 7” EGM1 40% Top 5 Europe2 20% US 0% N A VA S S ZE R ST PF E E IT ETH J O CO Y S TT SO TI EC TI CH A ZE IN LL M O
Slide 15: All Novartis Pharma regions are growing
… and all Novartis Pharma regions are growing Net sales September 2008 YTD (USD bn) Sep YTD Q3 2008 vs PY vs PY Rest of World in LC% in LC% 2.0 Latin America United States -5% +9% 1.3 United States Canada +11% +12% Japan 1.9 6.4 Europe +9% +9% Japan +5% +3% Europe 0.5 7.8 Canada Latin America +7% +4
Slide 16: Strong underlying growth in all key franchises
Strong underlying growth in all key franchises Sales by Business Unit, Sep YTD 2008 Sep YTD vs PY Q3 vs PY in (USD m) in LC% LC% Oncology 6 180 +14 +15 + 19% excl CVM 5 029 +8 Lotrel Gx +20 + 16% excl + 13% excl NSO 3 186 +1 Trileptal Gx -1 Trileptal Gx IID 1 505 +19 +18 Respiratory 758 +9 +14 Inclu
Slide 17: US returns to growth in Q3 2008
US returns to growth in Q3 2008 US sales growth by quarter, Overcoming 2007 negative 2008 vs 2007 (in LC%) events: • Zelnorm suspension • Lotrel, Famvir, Trileptal and Lamisil 9 generic competition Strong underlying portfolio -3 expansion drives performance • Core brands Diovan and Gleevec combi
Slide 18: US market becomes more restrictive
As US market becomes more restrictive*, a “One Size Fits All” sales model is no longer viable Open Mixed Restrictive Washington Montana North Dakota Vermont Maine Customer Centric Michigan Initiative (CCI) Minnesota Oregon New Hampshire Wisconsin Massachusetts Idaho South Dakota New York Rhode Islan
Slide 19: New US commercial model
New US commercial model: Bringing more value to customers Past commercial model New commercial model “One size fits all” structure Flexible, “geo-tailored” regional structure: across all markets • Maintain traditional field force strength in open markets • Integrated, key account model in restri
Slide 20: Strong execution of launches driving growth in Europe
Strong execution of launches driving growth in Europe Pharma sales in Europe (USD bn) Leveraging strong base in +9% LC 7.8 hypertension and oncology 6.4 Launches1 New launches driving growth Partnering with physicians, payors and governments to benefit patients: In-Market2 • Lucentis: NICE fin
Slide 21: Solid expansion in key emerging markets
Solid expansion in key emerging markets Novartis Market SELECTED EXAMPLES Growth Size (YTD Sep 08 vs 07)1 (2007)2 Growing ahead of market, led by cardiovascular and oncology portfolios China >30% USD 15 bn Leading global pharma company in hypertension growth Growing significantly ahead of mark
Slide 22: Innovative pipeline making progress
Innovative pipeline making progress Regulatory update SELECTED EVENTS Gleevec®/ FDA priority review for new indication in adjuvant gastro-intestinal stromal Glivec® tumors (GIST) received in August – action date in December 2008 Afinitor® FDA priority review for advanced kidney cancer received i
Slide 23: Building on solid foundation to drive future growth post Diovan patent expiry
Building on solid foundation to drive future growth post Diovan patent expiry in 2012 Hypertension and oncology remain core businesses • Both continue to grow and remain profitable • We will continue to invest and innovate Recent launches and pipeline shifting portfolio toward more specialized m
Slide 24: Adding incremental actions to maintain sales growth
Adding incremental actions to maintain sales growth through 2012 and beyond Strategic Key elements initiatives Accelerate Maximize full potential of existing pipeline by 1 Oncology expanding faster into new indications Expand sales forces Accelerate 2 EGM growth Optimize talent management and
Slide 25: Novartis Pharma conclusion
Novartis Pharma conclusion Raising Pharma outlook for 2008 sales performance • Now expect mid-single-digit growth in local currencies vs 2007 Operating income growing ahead of net sales • Strong business performance and productivity gains • Q4 2008 operating income margin expected at lower rate
Slide 26: Agenda
Agenda Overview D. Vasella Pharmaceuticals J. Jimenez Other Divisions and Group Leadership D. Vasella Financials R. Breu Outlook D. Vasella
Slide 27: Vaccines and Diagnostics: Expanding influenza business, preparing meningitis launches
Vaccines and Diagnostics: Expanding current influenza business, preparing meningitis launches Vaccines and Diagnostics expansion • Good sales growth 2008 YTD (+20%1, +15% in LC) • On track to deliver solid influenza vaccine sales in an increasingly competitive market Strong platform for future g
Slide 28: Sandoz: Growth focus on emerging markets
Sandoz: Growth focus on emerging markets 9M 2008 net sales up +11% in USD, +1% in local currency • Continuing strong growth in emerging markets • Biosimilars, Omnitrope and Binocrit gaining market share • Challenging mature markets Operating Income expanding by +12%1 • Product mix and productivi
Slide 29: Consumer Health achieves low-single-digit sales growth
Consumer Health achieves low-single-digit sales and steady double-digit profit growth Sales growth (+13%1, +6% in LC) driven by new contact lens CIBA launches (DAILIES Aqua Comfort Plus, AirOptix Aqua, etc.) Vision Strong customer service levels and quality excellence Productivity gains furthe
Slide 30: Improving speed, simplicity and productivity with Project Forward
Improving speed, simplicity and productivity with Project Forward 2008 cost savings ahead of schedule, already at USD 714 million New operating models in place • Animal Health and CIBA Vision: Lead-country model • Pharma: Lean regions and enhanced marketing operating model Resource redeploymen
Slide 31: Novartis Group Leadership
Novartis Group Leadership Chairman & CEO Daniel Vasella Internal Audit CFO Steven Barlow Raymund Breu Secretary of BoD Group Legal Monika Matti Thomas Werlen COO Joerg Reinhardt Human Resources Communications Jürgen Brokatzky Ann Bailey BioMedical Corporate Quality & Technical Research Corporate Aff
Slide 32: Agenda
Agenda Overview D. Vasella Pharmaceuticals J. Jimenez Other Divisions and Group Leadership D. Vasella Financials R. Breu Outlook D. Vasella
Slide 33: Sustained strong performance in first nine months
Sustained strong performance in first nine months USD m 9 M 20081 9 M 2007 1 % USD % LC2 Net sales 31 382 28 141 12 4 Operating income 7 284 6 474 13 excluding environmental charge as % of net sales 23.2% 23.0% Environmental charge - 590 Operating income3 7 284 5 884 24 as % of net sales 23.2% 20.9%
Slide 34: Q3 results reflect business expansion and productivity gains
Q3 08 results reflect business expansion and productivity gains USD m Q3 20081 Q3 2007 1 % USD % LC Net sales 10 747 9 613 12 7 Operating income 2 335 2 042 14 excluding environmental charge as % of net sales 21.7% 21.2% Environmental charge - 590 2 Operating income 2 335 1 452 61 as % of net sales
Slide 35: Productivity gains drive margin expansion
Productivity gains drive margin expansion and support high R&D investments % pt change 9M 08 vs. 9M 07 + 0.4 + Other revenues: increase in Pharma (mainly Betaseron) + 0.2 + COGS: Pharma productivity gains and 2007 Famvir impairment + 1.1 Sandoz productivity gains outweigh price erosion + 0.7 + M&S:
Slide 36: Operating income adjustments for intangible asset charges
Operating income adjustments for intangible asset charges and significant exceptional items USD m 9 M 2008 9 M 2007 P&L Line Pharmaceuticals 437 490 Mainly due to: Intangible asset charges 606 654 Exceptional restructuring 89 OIE Major product divestments -141 -166 OIE Release of pre-launch inventor
Slide 37: Alcon financing and higher tax rate lead to slower net income growth
Alcon financing and higher tax rate lead to slower net income growth USD m 9 M 2008 9 M 2007 Change (% USD) Operating income from continuing operations 7 284 5 884 24 Income from associated companies 344 308 12 Financial income, net 112 110 2 in % of average net liquidity 1 6.2% 7.3% Income before t
Slide 38: Accounting for the 25% Alcon equity stake
Accounting for the 25% Alcon equity stake Allocation of the USD 10.4 bn purchase price • Identifiable net assets of USD 6.2 bn with an average amortization period of 11 years • Goodwill of USD 4.2 bn Share of Alcon’s net income for Q3 08 attributable to Novartis1, • USD 121 m Q3 08 charges for
Slide 39: Strong free cash flow in first nine months of 2008
Strong free cash flow in first nine months of 2008 9M 2008 free cash flow change vs. previous year (USD m) 2008 vs 2007 Free cash flow 9 M 2007 (USD m) 1 729 0 1 729 Cash flow from operating activities 6 565 1 729 318 Investments in property, plant and equipment -1 445 2 048 350 Investments in intan
Slide 40: Forward ahead of plan, delivering USD 714 million
Forward ahead of plan, delivering USD 714 million1 so far in 2008 Expected 2008 savings Expected and realized savings 2008 breakdown by division Savings as of Q3 2008 USD m Overachievement 31 714 79 16 162 426 670 Pharma NCH Sandoz V&D Corporate Total 1 Above numbers do not include cost savings of U
Slide 41: Forward initiatives achieved target FTE reduction ahead of time
Forward initiatives achieved target FTE reduction ahead of time, supported by natural attrition1 Expected 2008 reductions Planned and achieved FTE reduction 2008 breakdown by division Reductions as of Q3 2008 Own FTEs (excluding 3rd party) Overachievement 683 0 0 48 2 683 1 952 2 500 Pharma NCH Sand
Slide 42: Minimal direct impact of financial crisis on treasury operations
Minimal direct impact of financial crisis on Novartis treasury operations No equity or bond investment exposure to any insolvent financial institution No counterparty exposure to any insolvent financial institution through financial contracts (swaps, options or other instruments) Sound ability
Slide 43: Agenda
Agenda Overview D. Vasella Pharmaceuticals J. Jimenez Other Divisions and Group Leadership D. Vasella Financials R. Breu Outlook D. Vasella
Slide 44: Novartis Group reaffirms outlook for FY 2008
Novartis Group reaffirms outlook for FY 2008 Barring unforeseen events Group sales for continuing operations expected to grow at mid-single digit rate (LC) Group operating and net income for continuing operations at record levels 44 | Novartis 9M 2008 Results | October 20, 2008
Slide 45: Appendix - Group
Appendix - Group Uy) NOVARTIS
Slide 46: Drivers of Q3 margin expansion
Pharmaceuticals, Sandoz and Consumer Health drive Q3 margin expansion % pt change Q3 08 vs. Q3 07 + 0.5 + Other revenues: increase in Pharma (mainly Betaseron) + 0.5 + 3.4 + COGS: Pharma productivity gains and 2007 Famvir impairment Sandoz operational efficiency improvements + 1.1 + M&S: Pharma prod
Slide 47: Alcon financing and higher tax rate lead to lower Group net margin
Alcon financing and higher tax rate lead to lower Group net margin1 % pt change Q3 08 vs. Q3 07 + 0.5 + Operating margin slightly stronger due to efficiency improvements - 1.8 - 0.4 - Income from associated companies impacted by Roche H1/08 catch-up and first-time impact of Alcon stake - 0.5 - Net f
Slide 48: Operating income adjustments for intangible asset charges
Operating income adjustments for intangible asset charges and significant exceptional items USD m Q3 2008 Q3 2007 P&L Line Pharmaceuticals 404 304 Mainly due to: Intangible asset charges 357 435 Exceptional restructuring 42 OIE V&D 78 74 Mainly due to: Intangible asset charges 78 72 Sandoz 86 115 Ma
Slide 49: Adjusted Group operating income grows 14% in Q3
Adjusted1 Group operating income grows 14% in Q3, driven by Pharmaceuticals, Consumer Health Adjusted % operating % operating income 1 income growth growth Pharmaceuticals 16 13 V&D 5 5 Sandoz 10 29 Consumer Health 14 20 Group continuing 14 61 0 5 10 15 20 0 20 40 60 80 1 Adjusted for intangible ass
Slide 50: Adjusted Group operating margin at 27.2% in Q3
Adjusted1 Group operating margin at 27.2% in Q3 Adjusted Operating margins (%) Q3 2008 Q3 2007 43.0 38.7 32.0 31.4 27.2 26.7 20.0 19.2 21.0 19.9 Pharma- V&D Sandoz Consumer Health Group ceuticals continuing 1 Adjusted for intangible asset charges and significant exceptional items 50 | Novartis 9M 20
Slide 51: Adjusted Group 9M operating income increases 10%
Adjusted1 Group 9M operating income increases 10% driven by Pharmaceuticals, Consumer Health Adjusted % operating 1 income growth % operating income growth 14 17 Pharmaceuticals -21 -71 V&D 5 12 Sandoz 14 18 Consumer Health 10 24 Group continuing -30 -20 -10 0 10 20 -80 -60 -40 -20 0 20 40 1 Adjuste
Slide 52: Adjusted Group operating margin at 26.3% for 9M
Adjusted1 Group operating margin at 26.3% for 9M Adjusted Operating margins (%) 9M 2008 9M 2007 32.4 31.6 30.6 26.3 26.6 20.0 19.7 20.8 20.5 20.0 Pharma- V&D Sandoz Consumer Health Group ceuticals continuing 1 Adjusted for intangible asset charges and significant exceptional items 52 | Novartis 9M 2
Slide 53: Non-operating items reflect reduced net liquidity and higher tax rate
Non-operating items reflect reduced average net liquidity and higher tax rate USD m Q3 2008 Q3 2007 Change (% USD) Operating income from continuing operations 2 335 1 452 61 Income from associated companies 88 116 -24 Financial income, net -3 43 -108 in % of average net liquidity 1 nm 4.0% Income be
Slide 54: Q3 free cash flow at USD 2.5 billion
Q3 free cash flow at USD 2.5 billion Q3 2008 free cash flow change vs. previous year (USD m) 2008 vs 2007 0 Free cash flow Q3 2007 (USD m) 1 618 1 618 697 Cash flow from operating activities 3 024 1 618 Investments in property, plant and equipment - 478 2 315 -204 172 2 487 252 Investments in intang
Slide 55: Q3 sales growth driven by Pharmaceuticals
Q3 sales growth driven by Pharmaceuticals % net sales growth Q3 2008 LC USD 9 Pharmaceuticals 14 Consumer Health 14% 14 V&D 16 Pharmaceuticals Sandoz 62% 18% 0 7 Sandoz V&D 6% 3 7 Consumer Health 7 12 Group 55 | Novartis 9M 2008 Results | October 20, 2008
Slide 56: US returns to growth in Q3 08
US returns to growth in Q3 08 Q3 2008 Net sales growth by Net sales by region region (%) LC USD Rest of US 4 Americas 4 8% Asia/Aus./ US Europe 7 Africa 17% 32% 16 Asia/Aus./ Africa 8 14 Europe 43% Rest of 8 Americas 15 56 | Novartis 9M 2008 Results | October 20, 2008
Slide 57: Group operating income surges 61%
Group operating income surges 61% (includes USD 590 m environmental charge in Q3 071) % Operating income growth (USD) Q3 2008 Pharmaceuticals 13 Consumer 12% V&D 5 Sandoz 12% Sandoz 29 V&D 7% Pharma- ceuticals Consumer Health 20 69% 61 Group 1 Excluding the charge, operating income growth was 14% 57
Slide 58: Group operating margin at 21.7% in Q3
Group operating margin at 21.7% in Q3 Operating margins (%) Q3 2008 Q3 2007 30.1 26.0 26.2 27.0 21.7 19.8 17.8 15.4 15.1 12.8 Pharma- V&D Sandoz Consumer Health Group ceuticals continuing 58 | Novartis 9M 2008 Results | October 20, 2008
Slide 59: 9M income from associated companies driven by Roche
9M 08 income from associated companies driven by Roche USD m 9 M 2008 9 M 2007 Change (% USD) Share of est. Roche net income 430 373 15% Depreciation and amortization of tangible and -103 -90 14% intangible assets Catch-up for actual Roche previous year 11 13 -15% Net income effect Roche 338 296 14%
Slide 60: First-time impact of Alcon equity stake
First-time impact of Alcon equity stake USD m Q3 2008 Q3 2007 Change (% USD) Share of est. Roche net income 130 144 -10% Depreciation and amortization of tangible and -34 -31 10% intangible assets Net income effect Roche 96 113 -15% Share of est. Alcon net income 121 Depreciation and amortization of
Slide 61: Interest income and currency gains drive financial income
Interest income and currency gains drive financial income USD m 9 M 2008 9 M 2007 Change (%) Financial Income/Expense 257 231 11 % of average liquidity1 3.0% 3.4% Interest expense -186 -176 6 % of average debt1 3.0% 3.4% Currency gains/losses 69 55 25 on operating activities Treasury result, net 140
Slide 62: Alcon financing leads to lower Q3 financial income
Alcon financing leads to lower Q3 financial income USD m Q3 2008 Q3 2007 Change (%) Financial Income/Expense 77 94 -18 % of average liquidity1 3.1% 3.3% Interest expense -88 -66 33 % of average debt1 3.1% 3.7% Currency gains/losses 16 15 7 on operating activities Treasury result, net 5 43 -88 % of a
Slide 63: Asset allocation of liquidity – Group Level
Asset allocation of liquidity – Group Level September 20081 September 20071 Alt. invest. Equities 4% Alt. invest. Equities 5% 3% 6% Bonds 12% 19% Bonds 72% Money 79% Money market market 1 Including hedges 63 | Novartis 9M 2008 Results | October 20, 2008
Slide 64: Currency distribution of liquidity – Group Level
Currency distribution of liquidity – Group Level September 20081 September 20071 Others Others 3% 3% CHF CHF 11% 16% EUR EUR 3% 9% 78% 77% USD USD 1 Including hedges 64 | Novartis 9M 2008 Results | October 20, 2008
Slide 65: USD is the predominant currency
USD is the predominant currency Products are imported for sale into US Sales Costs High cost level in CHF 40% 34% 35% 32% 32% 29% 30% 25% 25% (%) 20% 18% 16% 15% 10% 7% 5% 5% 2% 0% USD JPY EUR CHF Other 65 | Novartis 9M 2008 Results | October 20, 2008
Slide 66: Major currencies strengthen vs USD in 9M 2008
Major currencies1 strengthen vs USD in 9M 2008 Change in % vs. PY EUR 13.2 JPY 12.8 CHF 15.3 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 1 Based on YTD average rates 66 | Novartis 9M 2008 Results | October 20, 2008
Slide 67: Volume and currency drive 9M sales growth
Volume and currency drive 9M sales growth Growth in 9M 2008 (%) Volume 5 Price -1 Total LC 4 Acq. / Div. 0 Currency 8 Total USD 12 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 67 | Novartis 9M 2008 Results | October 20, 2008
Slide 68: In constant currencies, operating income increases
In constant currencies, operating income increases 6.7% Growth 9M 2008 (%) USD growth of Op. Inc.1 12.5 Translational gains 11.5 LC growth of Op. Inc. 1.0 Transactional losses 5.7 Currency corrected Op. Inc. Growth 6.7 1 Excluding the Q3 07 USD 590 m exceptional environmental charge 68 | Novartis 9M
Slide 69: 9M 2008 net sales growth components by division
9M 2008 net sales growth components by division Volume Price Acq./div. Total LC Currency Total USD Pharmaceuticals 2% 2% 0% 4% 7% 11% V&D 18% -3% 0% 15% 5% 20% Sandoz 9% -8% 0% 1% 10% 11% Consumer Health 3% 1% 0% 4% 7% 11% Group 5% -1% 0% 4% 8% 12% 69 | Novartis 9M 2008 Results | October 20, 2008
Slide 70: Impact of currency movements vs. USD on sales and operating income
Impact of currency movements vs. USD on sales and on operating income Impact of a 10% currency appreciation vs. USD on group sales EUR: 3.2% CHF: 0.2% JPY: 0.7% Others: 2.5% Impact of a 10% currency appreciation vs. USD on group operating income EUR: 4.0% CHF: -4.4% JPY: 1.3% Others:
Slide 71: Appendix - Pharma
Appendix - Pharma Uy) NOVARTIS
Slide 72: Productivity – on track for USD 632 million savings by end of 2008
Productivity – on track for USD 632 million savings by the end of 2008 Pharma Division savings as of Sept. 2008 vs. Sept. 2007 base (USD millions)* Delivered 94% of 2008 committed 632 savings through: 596 Field Force headcount reductions Global sourcing Optimization of Regional and Global head
Slide 73: Planned filings 2008 to ≥ 2011
Planned filings 2008 to ≥ 2011 NME LCM 2008 2009 2010 ≥ 2011 QAB149 AGO178 EPO906 LCI699 AEB071 COPD2 Depression Ovarian cancer Hypertension Kidney & heart transpl. ACZ885 ABF656 SOM230 PKC412 NIC002 CAPS18 Hepatitis C Cushing’s disease AML5 Smoking cessation RAD001 FTY720 SBR759 ATI355 ASA404 RCC1