3Q19 Earnings Conference November 20, 2019 Legal Disclaimers - PowerPoint PPT Presentation

3Q19 Earnings Conference November 20, 2019

Legal Disclaimers Forward-Looking Statements This document contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States 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,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Alcon’s current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict. Such forward-looking statements are subject to various risks and uncertainties facing Alcon, including: the commercial success of its products and its ability to maintain and strengthen its position in its markets; the success of its research and development efforts; uncertainties regarding the success of Alcon’s separation and spin-off from Novartis, including the expected separation and transformation costs, as well as any potential savings, incurred or realized by Alcon; pricing pressure from changes in third party payor coverage and reimbursement methodologies; global economic, financial, legal, tax, political, and social change; ongoing industry consolidation; its ability to maintain relationships in the healthcare industry; changes in inventory levels or buying patterns of its customers; its reliance on sole or limited sources of supply; its reliance on outsourcing key business functions; its ability to protect its intellectual property; the impact on unauthorized importation of its products from countries with lower prices to countries with higher prices; its success in completing and integrating strategic acquisitions; the effects of litigation, including product liability lawsuits; its ability to comply with all laws to which it may be subject; effect of product recalls or voluntary market withdrawals, including CyPass ; data breaches; the implementation of its enterprise resource planning system; its ability to attract and retain qualified personnel; the sufficiency of its insurance coverage; the accuracy of its accounting estimates and assumptions, including pension plan obligations and the carrying value of intangible assets; the ability to obtain regulatory clearance and approval of its products as well as compliance with any post-approval obligations; legislative and regulatory reform; the ability of Alcon Pharmaceuticals Ltd. to comply with its investment tax incentive agreement with the Swiss State Secretariat for Economic Affairs in Switzerland and the Canton of Fribourg, Switzerland; ability to service its debt obligations; the need for additional financing; its ability to operate as a stand-alone company; whether the transitional services Novartis has agreed to provide Alcon are sufficient; the impact of the spin-off from Novartis on Alcon’s shareholder base; the ability to declare and pay dividends; and the effect of maintaining or losing its foreign private issuer status under U.S. securities laws. Additional factors are discussed in Alcon’s filings with the United States Securities and Exchange Commission, including its Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements speak only as of the date of its filing, and Alcon assumes no obligation to update forward- looking statements as a result of new information, future events or otherwise. Intellectual property This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Non-IFRS measures Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies, and free cash flow. Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures. 2

Agenda Highlights 3Q19 financial results 2019 guidance 3

Highlights

Standing up new Alcon Completed commercial SAP implementation in Europe 85% of sales running through new SAP system Significant progress on installing new Vision Care manufacturing lines Second site ramping up manufacturing this year Executed a successful $2B notes offering Strengthening our long-term capital structure Projected separation costs ~$500 million Replicating IT systems as an independent company Ramping up transferred manufacturing capacity Original estimate $300 million 5

Launched PRECISION1 in the US, the newest daily SiHy lens First daily SiHy lens with Smart Surface technology Sales force delivering fit-sets into targeted customers Opened now for distributor ordering Positive initial feedback from optometrists 6

Launched PanOptix , first tri-focal intra-ocular lens in the US Successful placement of consignment sets at key Alcon and competitive accounts Introduced lens to significant number of key surgeons Clinical studies (1) among PanOptix wearers finds: 99% will choose the same lens again ◦ 98% will recommend it to family and friends ◦ 80% no need for glasses post-surgery ◦ SOURCES: (1) US Federal Drug Authority registration study 7

Implementing multi-year transformation plan Accelerate strategy and drive long-term growth Transform Alcon to a more focused and agile company Reinvest savings to fuel innovation Support Alcon's strategy for creating long-term shareholder value 8

Reinvesting into key growth initiatives Annualized run-rate savings ~$200-$225 million by 2023 Simplify infrastructure Create new global shared services Drive process improvement and automation Reinvest in growth priorities Accelerate R&D pipeline Strengthen commercial programs Develop customer-facing initiatives Support new product launches Transformation costs ~$300 million Reaffirming 2.5-3x FCF (1) by 2023 based on 2018 levels (1) Free cash flow is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 9 9

3Q19 IFRS Results

Third Quarter and YTD Results (IFRS) Worldwide Net Sales Operating Margin EPS $1,841M $1,762M $(0.14) (16.1)% (1.0)% $(0.42) 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 +4% $5,481M $5,360M (3.2)% (2.2)% $(1.16) $(0.32) YTD YTD18 YTD19 YTD18 YTD19 YTD18 YTD19 +2% YTD19 EPS includes separation and spin-readiness costs, Swiss tax reform impact, interest expense 11 11

3Q19 Core Results

Third Quarter 2019 Results (Core) (1) Worldwide Net Sales Core Operating Core Diluted EPS Margin $1,841M 17.4% 17.0% $1,762M $0.50 $0.46 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 +6% cc (2) Includes -20 bps FX impact (2) 3Q19 includes $0.06/sh of interest expense on debt and write-off of unamortized issuance costs and $0.01/sh of FX impact (2) (1) Core operating margin, and core EPS are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 13 (2) Constant currency growth, including FX impacts, are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix.

Year-to-date 2019 Results (Core) (1) Worldwide Net Sales Core Operating Core Diluted EPS Margin $5,481M $5,360M 17.8% $1.60 17.2% $1.43 YTD18 YTD19 YTD18 YTD19 YTD18 YTD19 +5% cc (2) Includes -70 bps FX impact (2) YTD 2019 includes $0.12/sh of interest expense on debt and write-off of unamortized issuance costs and $0.12/sh of FX impact (2) (1) Core operating margin, and core EPS are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 14 (2) Constant currency growth, including FX impacts, is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix.

Diversified portfolio across businesses and geographies Mix of Vision Care and Surgical Products Vision Care $0.8B (45%) Surgical $1B (55%) Implantables (28%) Ocular Health (37%) • Monofocal Intra-ocular lenses • Advanced technology IOLs • Dry eye products • Contact lens solution Implantables Ocular Health Consumables (56%) • Dedicated consumables $1.8B • Custom surgical packs • Procedural products 3Q19 Contact Lens Consumables Equipment/Other (16%) Contact Lenses (63%) • Cataract equipment • Daily lenses • Retinal equipment • Reusable lenses • Refractive equipment • Cosmetic lenses Equipment/ • Diagnostic and visualization Equipment/ Others • Equipment service Other • Procedural eye drops Numbers are rounded for presentation purposes. 15