Alcon Ag · SIX:ALC
Alcon — Q1 2007 Earnings Presentation
28 slides from Alcon's earnings presentation, Apr 26, 2007
Slide 1: First Quarter 2007 Webcast
Exhibit 99.1 First Quarter 2007 Webcast April 26, 2007
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 April 26, 2007, and Alcon does not undertak
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: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 07 Q1 06 Growth (dollars in millions, except per share amounts) Global Sales $ 1,322.7 $ 1,157.1 14.3% Constant Currency** 12.0% Net Earnings Reported $ 346.2 $ 295.7 17.1% Adjusted* $ 367.0 $ 295.7 24.1% Diluted EPS Reported $ 1.14 $ 0.95 20.0% Adjusted* $ 1.21
Slide 6: Q1 2007 Geographic Sales and Growth
Q1 2007 Geographic Sales and Growth Q1 2007 Sales by Geography $206.4 +16.8% Emerging Markets $634.4 15.6% +10.0% U.S. 48.0% Developed International 36.4% $481.9 +19.3% (dollars in millions) 6
Slide 7: Q1 2007 Product Sales and Growth
Q1 2007 Product Sales and Growth Q1 2007 Sales by Product Line $187.5 +19.6% Consumer 14.2% $580.7 +10.6% Surgical 43.9% Pharma 41.9% $554.5 +16.7% (dollars in millions) 7
Slide 8: Strong Pharmaceutical Sales Growth
Strong Pharmaceutical Sales Growth Reported Growth: +16.7% Constant Currency: +14.8% $600 $554.5 $550 $500 $475.1 $450 $400 Q1 2006 Q1 2007 (dollars in millions) Note: Constant currency sales growth is a non-GAAP measure presented to give investors a better comparison of operations between years 8
Slide 9: TRAVATAN Z Driving Glaucoma U.S. Share Gains
TRAVATAN®ZTM Driving Glaucoma U.S. Share Gains TRAVATAN® + TRAVATAN®Z™ U.S. Rx Share U.S. Launch of TRAVATAN®Z™ 22.0% 21.0% 21.4% 20.0% 20.4% 19.3% 19.3% 19.4% 19.0% 19.0% 16.0% 13.0% 10.0% Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Source: WK Health 9
Slide 10: DuoTrav Launch Progressing Well
DuoTravTM Launch Progressing Well Prostaglandin Combination Market Launch Month/Location EU, Canada and Australia 14.0% May 06 Germany Canada 12.0% 11.5% June 06 UK Poland 10.0% 8.9% Aug 06 Netherlands 8.0% 7.2% Sep 06 France 6.0% 4.9% Norway 4.0% 3.2% 3.7% Nov 06 Spain 2.1% Australia 2.0% 0.9% Jan
Slide 11: Patanol Share Growth in Japan
Patanol® Share Growth in Japan Unit Share of Japanese Allergy Market 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Dec-06 Jan-07 Feb-07 Mar-07 11
Slide 12: Pataday Reinvigorating Patanol Franchise
PatadayTM Reinvigorating Patanol® Franchise PatadayTM + Patanol® Rx Trend (Share of U.S. multi-action anti-allergy market) 78 2007 77 2006 76 75 +4.0pts 74 73 72 71 70 9 2 9 16 23 16 23 30 2/ 3/ 3/ 2/ 2/ 3/ 3/ 3/ Source: LaunchTrac 12
Slide 13: Surgical Sales Growing Faster Than Market
Surgical Sales Growing Faster Than Market Reported Growth: +10.6% Constant Currency: +7.9% $600 $580.7 $550 $525.2 $500 $450 $400 Q1 2006 Q1 2007 (dollars in millions) Note: Constant currency sales growth is a non-GAAP measure presented to give investors a better comparison of operations between yea
Slide 14: AcrySof IQ / ReSTOR / Toric Driving IOL Growth
AcrySof® IQ / ReSTOR® / Toric Driving IOL Growth Global Dollar Sales by Quarter of AcrySof® IOLs (dollars in millions) ReSTOR® & Toric 200 Natural & IQ Clear 150 100 50 0 01 01 02 02 03 03 04 04 05 05 06 06 07 20 20 20 20 20 20 20 20 20 20 20 20 20 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 14
Slide 15: AcrySof Toric Contributing to Premium IOL Growth
AcrySof® Toric Contributing to Premium IOL Growth ReSTOR® and Toric +19.1% $27.7 $28 $27 $26 $25 $24 $23.3 $23 $22 $21 $20 Q1 2006 Q1 2007 (dollars in millions) 15
Slide 16: AcrySof Toric Customer Usage Rising
AcrySof® Toric Customer Usage Rising Number of Customers Ordering Toric 500 (During the Month) 400 300 200 100 0 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 16
Slide 17: Consistent Vitreoretinal Sales Contribution
Consistent Vitreoretinal Sales Contribution 20.0% 15.0% 15.0% 12.8% 11.9% 9.8% 10.0% 8.6% 5.0% 0.0% 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 Growth rates represent current year quarter over prior year quarter 17
Slide 18: Consumer Eye Care Sales Growing Above Trend
Consumer Eye Care Sales Growing Above Trend Reported Growth: +19.6% Constant Currency: +17.6% $200 $187.5 $156.8 $150 $100 Q1 2006 Q1 2007 (dollars in millions) Note: Constant currency sales growth is a non-GAAP measure presented to give investors a better comparison of operations between years 18
Slide 19: RepleniSH Driving Market Share Gains
RepleniSHTM Driving Market Share Gains U.S. Unit Share of Branded Disinfectants 64% 53% Alcon Branded MPDS 43% 32% Fusarium Outbreak OPTI-FREE® RepleniSHTM 21% RepleniSHTM 11% Launch 0% 6 7 7 7 6 6 6 6 6 6 06 06 06 06 06 06 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 8/ 5/ 3/ 8/ 5/ 2/ 30 20 17 17 21 18 18 15 13 1
Slide 20: Financial Review
Financial Review Jacqualyn Fouse Senior Vice President, Chief Financial Officer & Corporate Strategy 20
Slide 21: Q1 2007 Reported Income Statement Detail
Q1 2007 Reported Income Statement Detail Reported % of Reported % of Q1 07 Sales Q1 06 Sales Gross Profit $ 973.7 73.6% $ 868.9 75.1% SG & A 417.1 31.5% 386.7 33.4% R&D 133.5 10.1% 119.3 10.3% Intangible Amortization 20.0 1.5% 20.5 1.8% Operating Income 403.1 30.5% 342.4 29.6% Other Non-Op Income 21
Slide 22: Comparable Q1 2007 Income Statement Detail
Comparable Q1 2007 Income Statement Detail Adjusted % of Reported % of Q1 07* Sales Q1 06 Sales Gross Profit $ 997.7 75.4% $ 868.9 75.1% SG & A 417.1 31.5% 386.7 33.4% R&D 133.5 10.1% 119.3 10.3% Intangible Amortization 11.3 0.9% 20.5 1.8% Operating Income 435.8 32.9% 342.4 29.6% Other Non-Op Income
Slide 23: Reported Tax Rate vs. "Base" Rate
Reported Tax Rate vs. “Base” Rate Q1 07 FY 2006 FY 2005 “Base” Effective Tax Rate* 18.8% 21.0% 25.1% Total Net Impact of (0.4)% (4.4)% (2.5)% “Non-structural” Items Reported Effective Tax Rate 18.4% 16.6% 22.6% * “Base” effective tax rate is a non-GAAP measure presented to give investors a better co
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 3/31/07 12/31/06 Short and Long Term Borrowings $ 957.6 $ 981.3 Cash and Cash Equivalents $ 1,496.2 $ 1,489.2 Consolidated S/H Equity $ 2,972.6 $ 2,913.6 A/R Change (From 12/31/06) 9.6% N/A Inventory Change (From 12/31/06) 3.1% N/A (dollars in millions) 24
Slide 25: 2007 Full Year Financial Guidance
2007 Full Year Financial Guidance • Sales range from $5,400 to $5,475 million • Adjusted EPS* range from $5.15 to $5.25 • Excludes charges associated with the impairment of the company’s refractive assets • Reported EPS range from $5.08 to $5.18 • Assumes currency exchange rates remain at current le
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Slide 27: Q1 2007 Non-GAAP Adjustments
Q1 2007 Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Impairment Non-GAAP Reported Charges Adjusted* Sales $ 1,322.7 $ -- $ 1,322.7 Cost of goods sold 349.0 (24.0) 325.0 Gross Profit 973.7 24.0 997.7 Selling, general and administrative 417.1 -- 417.1 Resear
Slide 28: Earnings Guidance Non-GAAP Adjustments
Earnings Guidance Non-GAAP Adjustments (dollars in millions, except per share amounts) Non-GAAP Adjustment Impairment Non-GAAP Projected Charges Adjusted* Diluted EPS Guidance – Low $ 5.08 $ 0.07 $ 5.15 Diluted EPS Guidance - High $ 5.18 $ 0.07 $ 5.25 *The guidance as adjusted above are non-GAAP mea