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Annual Report 2019 See Brilliantly See Brilliantly Alcon Is the Global Leader in Eye Care, Dedicated to Helping People See Brilliantly

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Annual Report 2019 See Brilliantly See Brilliantly Alcon Is the Global Leader in Eye Care, Dedicated to Helping People See Brilliantly Official Sponsor of 20/20 See Brilliantly Annual Report 2019 See Brilliantly See Brilliantly Alcon is the global leader in eye care, dedicated to helping people see brilliantly. With our 70+ year heritage, we are the largest eye care company in the world – with complementary businesses in Surgical and Vision Care. See Brilliantly Being a truly global company, we serve patients in more than 140 countries. We have a long history of industry firsts, and each year we commit a substantial amount in research and development to meet customer needs and patient demands. Table of Contents ii Message from the Board Chair iv Message from the CEO vi Business Summary ix Innovation Milestones x Financial Highlights xiv Alcon’s Strategy xv Corporate Responsibility Message from the Board Chair I am proud of what our team has accomplished following spin-off, Dear Shareholder, Dear Shareholder, particularly in the areas of standing up the new company, accelerating In 1945, two pharmacists in Fort Worth, Texas, Robert our innovation pipeline to grow revenue, and developing the culture to In 1945, two pharmacists in Fort Worth, Texas, Robert Alexander become an agile market leader. Our independence has created Alexander and William Conner, started a company that and William Conner, started a company that would focus tremendous energy among our associates, who can now directly would focus on manufacturing and selling products in a on manufacturing and selling products in a relatively new and participate in our success. In addition, we delivered solid results in relatively new and underserved market at the time: eye care. 2019, while laying the foundation for the future growth of New Alcon. underserved market at the time: eye care. They combined the first syllables of their last names to create “Alcon” and As we look ahead, the vision of our founders is still evident across our They combined the first syllables of their last names to create “Alcon” and spent spent their early years calling on ophthalmologists around the US, listening to company. Our legacy of innovation and singular focus on eye care their early years calling on ophthalmologists around the US, listening to their their unique and specific needs and making products to help them treat positions us to create tremendous value for our patients and the eye unique and specific needs and making products to help them treat patients. patients. care professionals who serve them. As William Conner said, “Our approach is medical specialist-oriented, in that For more than 70 years, this wisdom has guided our company and, to As William Conner said, “Our approach is medical specialist-oriented, in that we we concentrate our efforts on seeing the needs of patients through the eyes this day, it is what inspires our more than 20,000 associates around the concentrate our efforts on seeing the needs of patients through the eyes of the of the specialists who are treating them. By continuing to develop new world to help people See Brilliantly and deliver long-term, sustainable specialists who are treating them. By continuing to develop new products to serve products to serve these special needs, we feel the marketing opportunities growth for our shareholders. these special needs, we feel the marketing opportunities are so vast.” are vast.” Thank you for your continued support and interest in Alcon. Today, Alcon is the global leader in a $25 billion eye care market, with #1 or #2 Today, Alcon is the global leader in a $25 billion eye care market, with #1 or positions in every market segment in which we participate. #2 positions in every market segment in which we participate. Yours sincerely, In April 2019, following our spin-off from Novartis, we started our new chapter In April 2019, following our spin-off from Novartis, we started our new as an independent, publicly traded company, trading both on the Swiss SIX chapter as an independent, publicly traded company, trading both on the Swiss SIX Exchange and the New York Stock Exchange. Exchange and the New York Stock Exchange. Alcon’s inclusion in several market indices, including the Swiss SMI, reflects Alcon’s inclusion in several market indices, including the Swiss SMI, reflects our reputation as a world-class, “blue chip” company and we have received F. Michael Ball Chair our reputation as a world-class, “blue chip” company and we have received tremendous interest from a diverse global and regional investor base. tremendous interest from a diverse global and regional investor base. Independence also brings greater transparency and accountability to our Independence also brings greater transparency and accountability to our performance. We have put together a diverse Board of Directors comprised performance. We have put together a diverse Board of Directors comprised of of highly qualified members with wide-ranging expertise in eye care, highly qualified members with wide-ranging expertise in eye care, healthcare, healthcare, consumer goods, financial services and manufacturing. Our Board consumer goods, financial services and manufacturing. Our Board recognizes recognizes the importance of ESG practices in our role as a corporate citizen. To that end and following a self-evaluation of its first year, the Board decided the importance of ESG practices in our role as a corporate citizen. To that OurOur StrategicStrategic Journey to create a new Governance and Nomination Committee to specifically end and following a self-evaluation of its first year, the Board decided to address governance and nomination matters with a focus on key create a new Governance and Nomination Committee to specifically address 2016-2017 2018-2020 2021+ environmental and social topics and leading governance practices. We intend governance and nomination matters with a focus on key environmental and to publish our first Corporate Responsibility Report by mid-2020. social topics and leading governance practices. We intend to publish our first Fix the foundation Execute the growth plan Deliver leading-edge solutions We have already assembled an experienced executive management team Corporate Responsibility Report by mid-2020. Fix the foundation ExecuteAdvanced the technology growth plan DeliverAccelerate leading-edge innovation solutions made up of industry leaders with strong records of accomplishment across intraocular lenses (AT-IOLs) We have already assembled an experienced executive management team medical devices, healthcare and consumer markets. Advanced technology AccelerateExpand innovation markets made up of industry leaders with strong records of accomplishment across intraocularVitreoretinal lenses (AT-IOLs) and adjacencies To provide accountability for Alcon’s performance, we have strengthened our Expand markets and medical devices, healthcare and consumer markets. Daily disposable contact lenses New business models commercial structure by placing greater earnings responsibility across each Vitreoretinal adjacencies franchise. We have aligned our compensation incentives with key Dry eye To provide accountability for Alcon’s performance, we have strengthened our Daily disposable contact lenses New business models performance metrics, such as sales, core operating margins, free cash flow, commercial structure by placing greater earnings responsibility across each innovation and market share. Dry eye franchise. We have aligned our compensation incentives with key performance metrics, such as sales, core operating margins, free cash flow, innovation and market share. ii | Alcon Annual Report 2019 Alcon Annual Report 2019 | iii Message from the Board Chair I am proud of what our team has accomplished following spin-off, Dear Shareholder, particularly in the areas of standing up the new company, accelerating In 1945, two pharmacists in Fort Worth, Texas, Robert our innovation pipeline to grow revenue, and developing the culture to become an agile market leader. Our independence has created Alexander and William Conner, started a company that tremendous energy among our associates, who can now directly would focus on manufacturing and selling products in a participate in our success. In addition, we delivered solid results in relatively new and underserved market at the time: eye care. 2019, while laying the foundation for the future growth of New Alcon. They combined the first syllables of their last names to create “Alcon” and As we look ahead, the vision of our founders is still evident across our spent their early years calling on ophthalmologists around the US, listening to company. Our legacy of innovation and singular focus on eye care their unique and specific needs and making products to help them treat positions us to create tremendous value for our patients and the eye patients. care professionals who serve them. As William Conner said, “Our approach is medical specialist-oriented, in that For more than 70 years, this wisdom has guided our company and, to we concentrate our efforts on seeing the needs of patients through the eyes this day, it is what inspires our more than 20,000 associates around the of the specialists who are treating them. By continuing to develop new world to help people See Brilliantly and deliver long-term, sustainable products to serve these special needs, we feel the marketing opportunities growth for our shareholders. are vast.” Thank you for your continued support and interest in Alcon. Today, Alcon is the global leader in a $25 billion eye care market, with #1 or #2 positions in every market segment in which we participate. Yours sincerely,
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