Q3 2023 Earnings Presentation November 15, 2023 Safe harbor Forward-looking statements This document contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “projec ...

Financial Data and Key Metrics Changes - Alcon reported second quarter sales of $2.4 billion, reflecting a 12% year-over-year growth, driven by strong demand and favorable pricing [20][21] - Core operating margin improved to 19.9%, up 270 basis points, while core diluted earnings per share increased by 19% to $0.69 [6][24] - Core gross margin was 63.8%, up 110 basis points, attributed to higher sales and manufacturing efficiencies [23] Business Line Data and Key Metrics Changes - Surgical revenue increased by 10% year-over-year to $1.4 billion, with implantable sales at $437 million, up 2% year-over-year, and 5% excluding the South Korean reimbursement impact [20][21] - Consumables sales rose by 13% to $714 million, driven by favorable market conditions and pricing [21] - Vision Care sales reached $1 billion, up 15%, with contact lens sales increasing by 10% to $594 million, and ocular health sales up 22% to $426 million [22] Market Data and Key Metrics Changes - Global cataract procedures were up mid-high single digits year-over-year, with global ATIOL penetration increasing by 80 basis points compared to the previous year [18][19] - The retail market value for contact lenses grew mid to high single digits, with a steady wearer trade-up and meaningful contributions from price increases [19] - The company noted strong performance in Asian markets, particularly in China, which continues to recover [21] Company Strategy and Development Direction - Alcon aims to capitalize on its competitive product portfolio and strong commercial execution to drive above-market sales growth [29] - The company is focused on accelerating innovation and enhancing its service offerings, including the rollout of SMARTCataract, a digital health solution for surgical practices [12][29] - Alcon is preparing to launch Vivity in China, which is expected to help accelerate market share in that region [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum, citing improved surgeon productivity and a backlog of surgical procedures as key drivers [29][61] - The company updated its sales growth guidance for 2023 to 9% to 11%, reflecting strong performance in the first half of the year [26] - Management acknowledged potential challenges from new entrants in the IOL market but remains optimistic about maintaining market share through product performance [31][66] Other Important Information - Alcon is navigating ongoing supply chain challenges effectively, with expectations for recovery in contact lens care throughout the latter half of the year [18][21] - The company continues to invest in R&D, particularly following the acquisition of Aerie, which is expected to enhance its pharmaceutical offerings [24][58] Q&A Session Summary Question: Update on US PCIOL market share and competitive pressure - Management indicated that Alcon holds about two-thirds of the ATIOL business in the US and has maintained that share, despite new entrants [31][32] Question: Sustainability of contact lens growth momentum - Management believes that market share growth in contact lenses will be steady, with ongoing product innovations and strong manufacturing capabilities [34][35] Question: Equipment business growth and future opportunities - Management expressed excitement about the equipment business, highlighting opportunities in new product upgrades and digital integration [37] Question: Timeline for adjustable and accommodative lenses - Management refrained from providing specific timelines but indicated ongoing development efforts in this area [42] Question: Guidance for second half revenue growth - Management expects to trend towards the higher end of the guidance range, with historical growth patterns influencing expectations [44] Question: Update on Aerie's performance - Management confirmed that Aerie's revenues and total prescription growth are up year-over-year, aligning with expectations [58] Question: Factors influencing market outlook for the second half - Management cited improved productivity and staffing in surgical settings as key factors supporting a positive outlook [61]

Financial Data and Key Metrics Changes - First quarter sales reached $2.3 billion, an 11% increase year-over-year, driven by strong demand and positive pricing across the business [17][24] - Core operating margin was 20.6%, flat year-over-year, but up 130 basis points on a constant currency basis [20][24] - Core diluted earnings per share were $0.70, a 14% increase from the previous year on a constant currency basis [21][25] Business Line Data and Key Metrics Changes - Surgical revenue increased 8% year-over-year to $1.3 billion, with implantable sales down 3% to $427 million due to declines in South Korea [17][18] - Consumables sales rose 13% to $656 million, reflecting favorable market conditions and pricing [18] - Vision Care sales grew 16% to $1 billion, with contact lens sales up 14% to $615 million and ocular health sales up 19% to $414 million [19] Market Data and Key Metrics Changes - Global cataract procedures were up mid-single digits year-over-year, with global ATIOL penetration down 30 basis points but up 90 basis points when excluding Korea [14] - Retail market growth for contact lenses was up high single digits, with strong contributions from price increases [15] Company Strategy and Development Direction - The company aims to drive innovation and deliver above-market sales growth, focusing on new product launches and expanding its market share [26] - Management is cautious about the back half of the year, anticipating market growth at or slightly below historical rates due to macroeconomic conditions [15][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cataract volumes and the potential for growth in ATIOL penetration, particularly in the U.S. market [51] - The company is increasing its year-over-year constant currency sales growth guidance to 7% to 9%, reflecting strong business momentum [24][25] Other Important Information - Free cash flow for the quarter was an outflow of $19 million, an improvement from an outflow of $52 million last year [22] - The company expects to generate more free cash flow in 2023 compared to 2022 [22] Q&A Session Summary Question: Comments on premium IOL share dynamics - Management noted a 90 basis point increase in global premium IOL penetration when excluding Korea, indicating strong performance despite competitive pressures [28] Question: Clarification on margins - Management confirmed that the 20.6% margin was not impacted by selling days and provided insights on expected margin trends for the remainder of the year [30][32] Question: Contact lens purchasing activity - Management highlighted steady trade-up from consumers and strong volume growth, indicating a positive outlook for contact lens sales [36] Question: Cataract demand outlook - Management expects cataract volumes to remain stable, with no significant pullback anticipated in the market [51] Question: SG&A expectations for Q2 and Q3 - Management indicated that SG&A increases will align with historical trends, with no significant deviations expected [70] Question: Impact of foreign exchange - Management acknowledged FX pressures due to currency fluctuations, particularly against the Australian dollar and Japanese yen [71] Question: Contact lens market share - Management confirmed strong performance in gaining market share, driven by a broader product range and successful launches [75]

Alcon Inc. (NYSE:ALC) Q4 2022 Earnings Conference Call February 28, 2023 8:00 AM ET Company Participants Dan Cravens - Vice President & Global Head of Investor Relations David Endicott - Chief Executive Officer Tim Stonesifer - Chief Financial Officer Conference Call Participants Graham Doyle - UBS Anthony Petrone - Mizuho Group Larry Biegelsen - Wells Fargo Daniel Buchta - ZKB Matthew Mishan - Keybanc Capital Markets Veronika Dubajova - Citi Cecilia Furlong - Morgan Stanley Ryan Zimmerman - BTIG Chris Gret ...

Debt and Financial Obligations - The company has outstanding debt of $4.6 billion as of December 31, 2022, with an increase of $712 million in Q4 2022 to finance the Aerie transaction[46]. - The company may need to raise additional funds for working capital, infrastructure development, and strategic transactions, which could dilute existing shareholders[46]. - The company may be underestimating future pension and post-employment benefit obligations, with a potential increase in defined benefit obligations by $23 million for a 0.25% decrease in interest rates[52]. - The company recognized $62 million in impairment charges in 2022 due to the fair value of intangible assets being less than their carrying value[56]. - Alcon expects to continue recommending regular cash dividends based on the prior year's core net income, but future dividends are subject to shareholder approval and various factors including financial condition and corporate strategy[65]. - Future equity issuances could dilute existing shareholders' ownership percentage, adversely affecting earnings per share and market price[64]. Regulatory and Compliance Risks - The company is subject to various legal proceedings, including a patent infringement case with Johnson & Johnson Surgical Vision, resulting in a one-time payment of $199 million to resolve disputes[48]. - The company is subject to increasing government investigations and legal proceedings, which could lead to substantial liabilities and affect its reputation[50]. - The company faces significant regulatory compliance costs and risks, particularly with the EU's new Medical Device Regulation (EU MDR) that requires certification for all new medical devices marketed in the EU[61]. - The company must comply with stringent regulatory requirements for manufacturing, which, if not met, could lead to production shutdowns and significant revenue losses[57]. - The company is exposed to potential penalties and enforcement actions for non-compliance with healthcare fraud and abuse laws, which could adversely affect its business[59]. - The company recognized that changes in healthcare regulations could significantly impact its business operations and sales growth, particularly in the surgical segment[61]. - The company operates under IFRS, which may result in significant differences in financial reporting compared to US GAAP, potentially affecting comparability with US companies[66]. - Alcon's foreign private issuer status allows it to avoid certain US securities laws, but losing this status would increase regulatory compliance costs and complicate financial reporting[67]. - Shareholders must approve certain corporate actions, including dividend payments and capital increases, which may limit the company's flexibility in managing capital needs[67]. Market and Competitive Environment - Inflation rates in the US and EU reached multi-decade highs in 2022, leading to increased manufacturing costs, particularly for labor, electronic components, resins, and freight[46]. - The company may face significant sales losses if patent protection for pharmaceutical products is lost, as lower-priced generic versions would become available[46]. - The company faces challenges from competitors developing similar products, which could adversely affect its competitive position and financial results[43]. - Changes in exchange rates can significantly impact reported sales, costs, and earnings, particularly if the US dollar strengthens against foreign currencies[46]. - The company may incur significant costs if regulations change to no longer require prescriptions for contact lenses, impacting marketing and distribution strategies[61]. Intellectual Property and Goodwill - The company relies on a combination of patents, trademarks, and trade secrets to protect its intellectual property, which may not be as effective in emerging markets[43]. - The company carries a significant amount of goodwill and intangible assets, which may lead to noncash impairment charges if their fair value declines[56]. Environmental and Safety Concerns - The company may face increased costs to comply with evolving environmental, health, and safety laws, which could adversely impact research, development, and production efforts[63]. - The company is subject to stringent environmental regulations, which may increase operational costs over time[63]. - Alcon's operations involve the use of hazardous materials, and any contamination or injury could lead to significant liabilities that may adversely affect the business[63].

ALCON INC. INTERIM FINANCIAL REPORT | INDEX | Page | | --- | --- | | Operating Performance | 2 | | Liquidity and Capital Resources | 11 | | Condensed Consolidated Interim Financial Statements (unaudited) | | | Consolidated Income Statement | 15 | | Consolidated Statement of Comprehensive (Loss)/Income | 16 | | Consolidated Balance Sheet | 17 | | Consolidated Statement of Changes in Equity | 18 | | Consolidated Statement of Cash Flows | 19 | | Notes to Condensed Consolidated Interim Financial Statements | 20 ...

Alcon Inc. (NYSE:ALC) Q3 2022 Earnings Conference Call November 16, 2022 8:00 AM ET Company Participants Dan Cravens - Vice President and Global Head, Investor Relations David Endicott - Chief Executive Officer Tim Stonesifer - Chief Financial Officer Conference Call Participants Ryan Zimmerman - BTIG Julien Dormois - BNP Paribas Daniel Buchta - ZKB Larry Biegelsen - Wells Fargo Matthew Mishan - KeyBanc Capital Markets Jeff Johnson - Baird Cecilia Furlong - Morgan Stanley Joanne Wuensch - Citi Falko Friedri ...

Alcon Inc. (NYSE:ALC) Q2 2022 Results Conference Call August 10, 2022 8:00 AM ET Company Participants Dan Cravens - VP and Global Head IR David Endicott - CEO Tim Stonesifer - CFO Conference Call Participants Zach Weiner - Jeffries Chris Cooley - Stephens Daniel Buchta - ZKB Larry Biegelsen - Wells Fargo Matthew Mishan - KeyBanc Capital Ryan Zimmerman - BTIG Cecilia Furlong - Morgan Stanley Jeff Johnson - Baird Julien Dormois - BNP Paribas David Adlington - JPMorgan Operator Greetings and welcome to the Sec ...

Alcon Inc. (NYSE:ALC) Q1 2022 Results Conference Call May 11, 2022 8:00 AM ET Company Participants Dan Cravens - VP, IR David Endicott - CEO Tim Stonesifer - CFO Conference Call Participants Daniel Buchta - ZKB Larry Biegelsen - Wells Fargo Matthew Mishan - KeyBanc Capital Markets Matt Miksic - Credit Suisse Joanne Wuensch - Citi Cecilia Furlong - Morgan Stanley Zach Weiner - Jefferies Ryan Zimmerman - BTIG Graham Doyle - UBS Jeff Johnson - Baird David Adlington - JP Morgan Julien Dormois - BNP Paribas Oper ...

Financial Data and Key Metrics Changes - In Q4 2021, Alcon reported sales of $2.1 billion, a 15% increase compared to 2019, and full-year sales of $8.2 billion, up 12% versus 2019 [9][17] - Core operating margin was 16.3% for the quarter and 17.6% for the full year, consistent with guidance [9][20] - Core diluted EPS for Q4 was $0.56, up $0.11 from Q4 2019, and for the full year, it was $2.15, an increase of $0.26 versus 2019 [21] Business Line Data and Key Metrics Changes - Surgical sales in Q4 were $1.2 billion, up 15% versus 2019, driven by a 27% increase in implantable sales [17][18] - Vision Care sales in Q4 were $875 million, growing 13% versus 2019, with contact lens sales up 16% [19][20] - Ocular health sales were $342 million in Q4, a 10% increase compared to 2019, primarily due to dry eye products [20] Market Data and Key Metrics Changes - Global cataract procedures in Q4 were down low single-digits compared to 2019, but excluding India, procedures were up low to mid-single digits [15] - The contact lens market returned to 2019 levels in Q4, growing high single-digits, led by the US [16] - International markets are still recovering at varied paces, with the US showing stronger growth [16] Company Strategy and Development Direction - Alcon aims to grow above market levels by focusing on innovation and addressing customer needs, with double-digit revenue growth in both Surgical and Vision Care franchises [10][16] - The company completed its separation as an independent entity, allowing for intensified focus on product innovation [11] - Investments in manufacturing and transformation initiatives are expected to optimize cost structures and support new product launches [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite ongoing pandemic challenges, with a robust pipeline of innovative products [10][27] - For 2022, Alcon expects net sales of $8.7 billion to $8.9 billion, reflecting 7% to 9% constant currency growth over 2021 [25] - The company anticipates continued inflationary pressures but is actively working to mitigate these through price increases and productivity initiatives [25][26] Other Important Information - Free cash flow for 2021 was $645 million, up from $367 million in 2019, with capital expenditures of $700 million [22] - Transformation costs were $28 million in Q4 and $68 million for the full year, with significant cost savings reinvested into the business [23] Q&A Session Summary Question: Update on AT-IOL space and PanOptix performance - Management noted a good quarter for both PanOptix and Vivity, with market share around 80% in the US [31] Question: Contact lens manufacturing upgrades - Management refrained from disclosing specific line numbers but indicated continued investment in manufacturing capacity [32][34] Question: Guidance variables for 2022 - Management acknowledged market recovery as a key variable, with conservative growth assumptions due to ongoing pandemic impacts [38] Question: Stocking or destocking in Q4 - Management confirmed no stocking on their part, but noted competitor stocking had some market effect [40] Question: Sales and EPS cadence for 2022 - Management expects typical seasonal patterns, with Q1 sales down low single digits due to the Omicron surge [44] Question: Long-term operating margin goals - Management remains confident in achieving low 20% operating margins by 2023, primarily through revenue growth and operating leverage [48][49] Question: Organic growth context - Management indicated that the contact lens market is expected to grow mid-single digits, driven by recovery and new product launches [60] Question: Pricing power across the business - Management noted limited pricing power in the Surgical business, while some price increases are anticipated in Vision Care [62][64] Question: Adoption of Vivity in international markets - Management reported positive adoption of Vivity, particularly among existing surgeons, with plans for further market penetration [68] Question: Initial response to TOTAL30 launch - Management expressed optimism about TOTAL30's market potential, noting strong initial feedback from optometrists [74]