Slide 1: Seeing Beyond Today
Exhibit 99.1 Seeing Beyond Today Second Quarter 2006 Webcast July 25, 2006
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 25, 2006, and Alcon does not undertake
Slide 3: Management Presentation by
Management Presentation by Cary Rayment Chairman , President & CEO Jacqualyn Fouse Senior Vice President Chief Financial Officer & Corporate Strategy 3
Slide 4: Business Overview
Business Overview Cary Rayment Chairman, President & CEO 4
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Q2 06 Q2 05 Growth Global Sales $ 1,310.8 $ 1,172.0 11.8% Net Earnings $ 465.6 $ 325.0 43.3% Diluted EPS $ 1.50 $ 1.04 44.2% (dollars in millions, except per share amounts) 5
Slide 6: Pharmaceutical Sales
Pharmaceutical Sales Reported Constant 2006 2005 Growth Currency Q2 $ 559.5 $ 502.6 11.3% 11.1% YTD $ 1,034.6 $ 934.6 10.7% 11.3% • Glaucoma franchise increased 12.0% in Q2 – Travatan® share gains led to 19.8% growth – Azopt® Rx’s rose in US due to role as adjunctive therapy • Vigamox® leads the cat
Slide 7: Key Brand Development
Key Brand Development May 2006 YTD Brand Rx Market US Rx Growth Growth % Growth % Travatan 20.0% 6.4% Azopt 17.3% (4.2%) Vigamox 21.0% 11.4% TobraDex 2.6% 4.8% Nevanac n/a 18.6% Patanol 5.1% 7.4% CiproDex 16.1% (0.5%) Total Otic 6.3% (0.5%) 7
Slide 8: Surgical Sales
Surgical Sales Reported Constant 2006 2005 Growth Currency Q2 $ 567.4 $ 520.8 8.9% 9.1% YTD $ 1,092.6 $ 1,009.1 8.3% 10.0% • AcrySof® IOL franchise increased 18.0% in Q2 – IOL units grew 9.7%, much faster than underlying market – AcrySof® IQ and AcrySof® Natural rose 39.4% – AcrySof® ReSTOR® gained
Slide 9: Market Leader in Cataract/Refractive ASCs
Market Leader in Cataract/Refractive ASCs 80% Alcon is the cataract share leader in hospitals AND ASCs --ASC IOL Shares (1Q06)-- 70% 60% 50% Alcon AMO 40% B&L 30% Other 20% 10% 0% Total Market Hospital ASC SOURCE: Market Scope Annual Cataract Surgeon Report (June 2006) 9
Slide 10: Consumer Products Sales
Consumer Products Sales Reported Constant 2006 2005 Growth Currency Q2 $ 183.9 $ 148.6 23.8% 23.5% YTD $ 340.7 $ 298.8 14.0% 14.5% • OPTI-FREE® RepleniSH® has gained 12 share points since launch, half before the ReNu* MoistureLoc* withdrawal • ReNu* MoistureLoc* withdrawal has significantly benefite
Slide 11: Financial Review
Financial Review Jacqualyn Fouse Senior Vice President Chief Financial Officer & Corporate Strategy 11
Slide 12: Q2 2006 Income Statement Detail
Q2 2006 Income Statement Detail % of % of Q2 06 Sales Q2 05 Sales Sales $ 1,310.8 $ 1,172.0 Gross Profit $ 985.5 75.2% $ 884.3 75.5% SG & A $ 264.8 20.2% $ 341.8 29.2% R&D $ 124.3 9.5% $ 100.8 8.6% Operating Income $ 575.8 43.9% $ 419.8 35.8% (dollars in millions) 12
Slide 13: Q2 YTD 2006 Income Statement Detail
Q2 YTD 2006 Income Statement Detail % of % of YTD 06 Sales YTD 05 Sales Sales $ 2,467.9 $ 2,242.5 Gross Profit $ 1,854.4 75.1% $ 1,666.2 74.3% SG & A $ 651.5 26.4% $ 678.3 30.2% R&D $ 243.6 9.9% $ 199.3 8.9% Operating Income $ 918.2 37.2% $ 746.6 33.3% (dollars in millions) 13
Slide 14: Adjusted Earnings Growth
Adjusted Earnings Growth Q2 06 Q2 05 Q2 06 Q2 05 YTD YTD Net Earnings - Reported $ 465.6 $ 325.0 $ 761.3 $ 574.5 Less: EYE Settlement1 -99.1 -97.5 Plus: Share Based Comp1 12.5 33.6 Net Earnings – Adjusted2 $ 379.0 $ 325.0 $ 697.4 $ 574.5 Growth 16.6% 21.4% Diluted EPS - Reported $ 1.50 $ 1.04 $ 2.45
Slide 15: Share-Based Compensation Expenses
Share-Based Compensation Expenses Q2 06 Q2 06 YTD Actual Actual COGS $ 3.6 $ 5.8 SG&A 9.6 28.9 R&D 4.9 14.7 Tax effect (5.6) (15.8) Total Impact to Net Earnings $ 12.5 $ 33.6 EPS Impact $ 0.04 $ 0.11 (dollars in millions, except per share amounts) 15
Slide 16: Reported Tax Rate vs. "Base" Rate
Reported Tax Rate vs. “Base” Rate Q2 06 2005 2004 YTD Reported Effective Tax Rate 18.5% 22.6% 22.6% Total Net Impact of 3.0% 2.5% 5.2% “Non-structural” Items “Base” Effective Tax Rate 21.5% 25.1% 27.8% * “Base” effective tax rate is a non-GAAP measure presented to give investors a better comparison
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights 6/30/06 12/31/05 Short and Long Term Borrowings $ 902.8 $ 1,083.4 Cash and Cash Equivalents $ 1,237.6 $ 1,457.2 Consolidated S/H Equity $ 2,739.6 $ 2,556.1 A/R Change (From 12/31/05) 24.2% N/A Inventory Change (From 12/31/05) 5.5% N/A (dollars in millions) 17
Slide 18: 2006 Outlook
2006 Outlook Alcon’
Slide 19: 2006 Full Year Financial Guidance
2006 Full Year Financial Guidance • Sales range from $4.85 to $4.90 billion – Global growth across major product lines – Share gains from recent product launches – Continued faster growth in emerging markets – Higher contact lens care sales ® ® • AcrySof ReSTOR sales to exceed $100 million 19
Slide 20: 2006 Full Year Financial Guidance
2006 Full Year Financial Guidance • Reported EPS expected to be $4.45 to $4.55 – Higher gross margin from product mix and production efficiencies – Lower effective tax rate in range of 19% to 20% for full year – Includes negative impact of $0.17 per share for share-based compensation expense in 2006
Slide 21: Seeing Beyond Today
Seeing Beyond Today