Slide 1: 2003 2nd Quarter and Year to Date Results
2003 2nd Quarter and Year to Date Results Tim Sear Chairman, President & CEO Jacqualyn Fouse Senior Vice President of Finance & CFO July 31, 2003
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. Alcon does not undertake any obligation to update any of the forward looking s
Slide 3: Financial Results
Financial Results
Slide 4: Second Quarter Financial Highlights
Second Quarter Financial Highlights Q2 03 Q2 02 Growth Global Sales $ 925.4 $ 809.5 14.3% Net Earnings $ 178.2 $ 162.8 9.5% Proforma Net Earnings $ 178.2 $ 156.4 13.9% Reported EPS* $ 0.57 $ 0.53 7.5% *Diluted (dollars in millions, except per share amounts)
Slide 5: Year to Date Financial Highlights
Year to Date Financial Highlights YTD 03 YTD 02 Growth Global Sales $ 1,732.5 $ 1,516.0 14.3% Net Earnings $ 308.4 $ 256.8 20.1% Proforma Net Earnings $ 308.4 $ 264.6 16.6% Reported EPS* $ 1.00 $ 0.87 14.9% *Diluted (dollars in millions, except per share amounts)
Slide 6: Reported vs. Proforma Net Earnings
Reported vs. Proforma Net Earnings Q2 03 Q2 02 YTD 03 YTD 02 Reported Net Earnings $ 178.2 $ 162.8 $ 308.4 $ 256.8 Deferred Comp Conversion -- -- -- 22.6 IPO Net Interest Expense -- (9.5) -- (9.5) Tax Impact of Above Items -- 3.1 -- (5.3) Proforma Net Earnings $ 178.2 $ 156.4 $ 308.4 $ 264.6 (dollar
Slide 7: Second Quarter Income Statement Detail
Second Quarter Income Statement Detail % of % of Q2 03 Sales Q2 02 Sales Gross Profit $ 658.3 71.1% $ 575.0 71.0% SG & A $ 291.1 31.5% $ 246.8 30.5% Research & Development $ 89.3 9.6% $ 74.2 9.2% Effective Tax Rate 30.4% N/A 32.3% N/A (dollars in millions)
Slide 8: Year to Date Income Statement Detail
Year to Date Income Statement Detail % of % of YTD 03 Sales YTD 02 Sales $1,212.1 70.0% $1, 071.1 70.7% Gross Profit SG & A $ 555.3 32.1% $ 499.2 32.9% Research & Development $ 167.5 9.7% $ 149.5 9.9% Effective Tax Rate 30.4% N/A 32.5% N/A (dollars in millions)
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights 6/30/03 12/31/02 Net Debt $ 713.6 $ 908.8 Consolidated S/H Equity $ 1,240.8 $ 974.3 Net Debt-to-Total Capital Ratio 37% 48% A/R Change +24.1% NA (constant currency vs. 12/31/02) Inventory Change - 4.3% NA (constant currency vs. 12/31/02) (dollars in millions)
Slide 10: Geographic and Product Line Sales
Geographic and Product Line Sales
Slide 11: Geographic Sales Breakdown
Geographic Sales Breakdown YTD 2003 YTD 2002 26.2% 23.0% 7.3% 8.4% 54.1% 12.4% 55.3% 13.3% United States United States Europe Europe Japan Japan Rest of World Rest of World
Slide 12: Product Line Sales - Global
Product Line Sales - Global YTD 2003 YTD 2002 37.0% 40.1% 16.2% 14.9% 46.8% 45.0% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer
Slide 13: Product Line Sales – U.S. vs. Non-U.S.
Product Line Sales – U.S. vs. Non-U.S. YTD 2003 Non-U.S. YTD 2003 U.S. 30.0% 48.7% 15.5% 14.5% 54.5% 36.8% Surgical Surgical Pharmaceuticals Pharmaceuticals Consumer Consumer
Slide 14: Pharmaceutical Sales
Pharmaceutical Sales 800 + 23.9% 700 600 $694.8 500 $561.0 + 25.4% 400 300 $392.2 $312.7 200 100 0 Q2 2002 Q2 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 15: Pharmaceutical Sales Detail
Pharmaceutical Sales Detail YTD YTD Q2 03 Q2 02 Growth 03 02 Growth Infection/ Inflammation 140.1 116.5 20.3% 266.2 225.1 18.3% Glaucoma 106.3 89.6 18.6% 207.9 169.9 22.4% Allergy 119.4 87.1 37.1% 176.0 134.9 30.5% Otic 40.4 26.2 54.2% 62.3 40.0 55.8% (dollars in millions)
Slide 16: Surgical Sales
Surgical Sales 900 800 + 9.9 % 700 $778.8 600 $708.8 500 + 8.2 % 400 300 $401.9 $371.4 200 100 0 Q2 2002 Q2 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 17: Surgical Sales Detail
Surgical Sales Detail YTD YTD Q2 03 Q2 02 Growth 03 02 Growth IOL’s 126.5 113.5 11.5% 244.1 215.1 13.5% Cat/Vit 256.3 238.5 7.5% 497.1 454.5 9.4% Refractive 19.1 19.4 -1.5% 37.6 39.2 -4.1% (dollars in millions)
Slide 18: Consumer Eye Care Sales
Consumer Eye Care Sales 300 + 5.2 % 250 $258.9 $246.2 200 150 + 4.7 % 100 $125.4 $131.3 50 0 Q2 2002 Q2 2003 YTD 2002 YTD 2003 (dollars in millions)
Slide 19: Consumer Sales Detail
Consumer Sales Detail YTD YTD Q2 03 Q2 02 Growth 03 02 Growth Contact Lens 72.4 68.4 5.8% 142.5 138.8 2.7% Disinfectants Artificial Tears 29.8 27.1 10.0% 58.2 51.3 13.5% Other 29.1 29.9 -2.7% 58.2 56.1 3.7% (dollars in millions)
Slide 20: 2003 Outlook
2003 Outlook
Slide 21: 2003 Financial Guidance
2003 Financial Guidance • Sales range from $3.36 to $3.39 billion • Product line growth rates: • Pharmaceutical 16-18% • Surgical 7-9% • Consumer 4-6% • EPS range from $1.85 to $1.90
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