Novartis AG · SIX:NOVN
Novartis — FY2003 Earnings Presentation
9 slides from Novartis's earnings presentation, Jan 22, 2004
Slide 1: Highlights 2003
Highlights 2003 Daniel Vasella, MD Chairman and CEO, Novartis AG Full Year 2003 Results – Key Figures In USD m 2003 2002 Change Change in % USD in % LC Sales 24 864 20 877 +19 +11 Operating income 5 889 5 092 +16 as a % of sales 23.7 24.4 Net income 5 016 4 725 +6 as a % of sales 20.2 22.6 Free Cash
Slide 2: Market Share Gains of All Business Units
Market Share Gains of All Business Units Double-Digit Sales Expansion 2003 Market Sales Sales growth Sales share in USD m in % by region Pharma- LC 11 ceuticals + 16 020 Europe US USD 18 41% 35% LC 16 Consumer + 8 844 Health1 USD 24 LC 11 Asia/ LatAm/ Group + 24 864 Australia/ Canada 19 Africa 8% US
Slide 3: Further Rejuvenation of the Product Portfolio
Further Rejuvenation of the Product Portfolio % of pharma sales Launch products (0-2 years) New products (2-5 years) Mature brands (>5 years) Non patented products 2002 2003 2004E 5 FRESCO 2003 / Daniel Vasella / 2004-01-22 / Analysts Double-Digit Operating Income Expansion Operating income Operatin
Slide 4: Brains & Bricks
Bold Investments in Innovation Pharma R&D as % of pharma sales, Q3 YTD 2003 S-P 19.9 Novartis 18.8 Lilly 18.6 Aventis 18.0 AZ 17.5 Pfizer 16.5 Wyeth 14.5 Merck 14.1 Abbott 13.9 J&J 13.0 GSK 12.9 BMS1 11.6 1 BMS excluding Oncology Therapeutic Network Source: Company reports, SEC filings, Analyst repo
Slide 5: Attracting Scientific Leadership
Attracting Scientific Leadership Disease-related science Comprehensive science Alexander Kamb Chemical universe Global Head, Oncology (Deltagen) Scott Biller Global Head of Chemistry (Bristol-Myers Squibb) Seigo Izumo Genomic universe Global Head, Cardiovascular (Harvard Medical School) En Li Jeff P
Slide 6: Novartis Rated a Top Employer
Novartis Rated a Top Employer • Fortune “10 Great Companies to Work for in Europe” • Attractive to best-in-class scientists (up 3 ranks in 2003 Science survey) 11 FRESCO 2003 / Daniel Vasella / 2004-01-22 / Analysts Leading, Successful Innovator • Thought leading research (Nature, Protein-sensing G-
Slide 7: Leading Development Performance
Leading Development Performance • Median development times shorter than industry1 • Most US approvals (NMEs2/BLAs3) since 2000 • #1 in a survey for use of new technologies4 • 64 projects in phase II, III and registration 1 CMR data 2 New Molecular Entity 3 Biological License Application 4 CenterWatc
Slide 8: Best in Class R&D Productivity
Best in Class R&D Productivity NPV1/capitalized R&D 2.5 2 1.5 1 0.5 0 Shire Schering Merck Novo Nordisk Novartis US Sector Pfizer Lilly BMS GSK AZ Shionogi Sanofi Aventis Yamanouchi Daiichi Eisai S-P Roche Sankyo Altana Takeda Fujisawa Lundbeck Wyeth Merck KGaA European Japanese Global 1 eNet Presen
Slide 9: Building Blockbusters
Building Blockbusters Maximize new product potential, designing successful clinical trial strategies and leading marketing and sales capabilities Diovan® Build blockbusters against strong competitors Lotrel® Recognize and capitalize on new market trends Elidel®/Zelmac®/ Identify and shape new attrac