Novartis Ag · SIX:NOVN
Novartis — FY2005 Earnings Presentation
17 slides from Novartis's earnings presentation, Feb 8, 2006
Slide 1: Share Information
SHARE INFORMATION Return on average equity (%) 19.0 18.6 (2) Earnings per share (USD) (1) 2.63 2.37 (2) Operating cash flow per share (USD) 3.46 2.84 (2) ADS price at end of year (USD) 52.48 50.54 Share price at end of year (CHF) 69.05 57.30 Pay-out ratio based on outstanding shares (%) (1) Average
Slide 2: Earnings per Share (USD) and Pay-out Ratio (%)
EARNINGS PER SHARE (USD) AND PAY-OUT RATIO (%) usp, % 28 56 2a 48 20 40 16 32 12 24 os 16 08 5 o o 2oor! 2002) 20032004 | Not adjsted for new IFRS acounding ales hia bac
Slide 3: Net Sales by Division
NET SALES BY D DIVISION RRs soa Co ‘CONSUMER HEALTH 22% 24%
Slide 4: News in 2005
NEWS IN 2005 GROUP Record results with double-digit net sales and operating income growth in 2005. Group net sales up 14% (+13% in local currencies) and operating income advances 10% as strong performances in all divisions are partially offset by acquisition-related costs. PHARMACEUTICALS Novartis c
Slide 5: Net Sales and Operating Income
NET SALES AND OPERATING INCOME {in USD milions) 20000 Ne sales Operating income pe "Nor adjsted for new IFRS acounting ales Pho fas
Slide 6: Sandoz Key Figures
SANDOZ KEY FIGURES (in USD millions unless indicated otherwise) Net sales 4 694 3 045 Operating income (1) Research and development (1) Research and development as % of net sales 9.2 9.0 (1) Free cash flow (1) Net operating assets 12 715 4 493 Additions to property, plant & equipment (2) Number of e
Slide 7: Net Sales and Operating Income
NET SALES AND OPERATING INCOME, {in USD millions) I Le 200172002 sales Operating income ‘Seu cw HERS accounting rales
Slide 8: Consumer Health Key Figures
CONSUMER HEALTH KEY FIGURES (in USD millions unless indicated otherwise) Net sales 7 256 6 705 Operating income 1 055 1 006 (1) Research and development (1) Research and development as % of net sales 4.0 4.0 (1) Free cash flow (1) Net operating assets 4 433 3 850 Additions to property, plant & equip
Slide 9: Net Sales and Operating Income
NET SALES AND OPERATING INCOME (in USD milions) 000 ay Net sales 1 Operating income "Not adjusted for new IFRS accounting rules 2 ro forma
Slide 10: Pharmaceuticals
PHARMACEUTICALS Important market share gains in 2005 as Novartis outpaces the competition through focus on innovative medicines that address needs of patients worldwide, especially in cardiovascular disease and oncology. Double-digit net sales growth of 10% (+9% lc) to USD 20.3 billion, supported by
Slide 11: Share options outstanding and executive share ownership
As of December 31, 2005, a total number of 59.3 million share options was outstanding, providing the right to an equal number of shares, which corresponds to 2.2% of the total number of Novartis AG issued shares. OWNERSHIP OF NOVARTIS SHARES AND SHARE OPTIONS BY THE EXECUTIVES The total number of No
Slide 12: Board of Directors
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Novartis MSWPI SMI BOARD OF DIRECTORS DANIEL VASELLA, M.D. Chairman and CEO Swiss, age 52 HELMUT SIHLER, J.D., PH.D. Vice Chairman and Lead Director Austrian, age 75 HANS-JOERG RUDLOFF Vice Chairman German, age 65 DR. H.C. BIRGIT BREUEL German, age 68 PETE
Slide 13: Growth
NET SALES GROWTH in %) Phaemaceuticals Sandon Consumer Health [LNet sales growth in USD Net sls growth n loca currencies
Slide 14: Growth by Region
NET SALES GROWTH BY REGION fin) — A cd Retof Group l u il Us Austealia Americas USD B local currencies ri
Slide 15: Pharmaceuticals, Sandoz, Consumer Health, Group
6 J |) ‘OPharmaceaticlsESandor Consumer Health Group
Slide 16: Free Cash Flow
FREE CASH FLOW USD millions 2004 (1) USD millions % Change Cash Flow 7 545 6 852 Change in provisions, net other current assets and other operating cash flow items -163 Cash Flow from operating activities 8 080 6 689 Investment in property, plant & equipment -1 188 -1 269 -6 Change in other assets -
Slide 17: Key Novartis Share Data
KEY NOVARTIS SHARE DATA Issued shares 2 739 171 000 2 777 210 000 Of which treasury shares Reserved for employee share-based compensation 40 291 620 41 569 718 Not specifically reserved 362 962 880 398 145 155 Treasury shares 403 254 500 439 714 873 Outstanding shares at December 31 2 335 916 500 2