Aaaq2 2015 Ir Presentation

Second Quarter 2015 Results

Investor Presentation

July 21, 2015

Disclaimer

This presentation contains forward-looking statements that can be identified by words such as “potential,” “expected,” “will,” “planned,” or similar terms, or by express or implied

discussions regarding potential new products, potential new indications for existing products, or regarding potential future revenues from any such products; potential shareholder

returns or credit ratings; or regarding the potential completion of the announced transaction with CSL, or regarding the potential financial or other impact on Novartis of the transactions

with GSK, Lilly or CSL, or regarding any potential strategic benefits, synergies or opportunities as a result of these transactions; or regarding potential future sales or earnings of the

Novartis Group or its divisions and associated companies; or by discussions of strategy, plans, expectations or intentions. You should not place undue reliance on these statements.

Such forward-looking statements are based on the current beliefs and expectations of management regarding future events, and are subject to significant known and unknown risks and

uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in

the forward-looking statements. There can be no guarantee that any new products will be approved for sale in any market, or that any new indications will be approved for any existing

products in any market, or that any approvals which are obtained will be obtained at any particular time, or that any such products will achieve any particular revenue levels. Nor can

there be any guarantee that the announced transaction with CSL will be completed in the expected form or within the expected time frame or at all. Neither can there be any guarantee

that Novartis will be able to realize any of the potential strategic benefits, synergies or opportunities as a result of the transactions with GSK, Lilly or CSL. Neither can there be any

guarantee that the Novartis Group or any of its divisions or associated companies will achieve any particular financial results in the future. Nor can there be any guarantee that

shareholders will achieve any particular level of shareholder returns. Neither can there be any guarantee that the Novartis Group, or any of its divisions, will be commercially successful

in the future, or achieve any particular credit rating. In particular, management’s expectations could be affected by, among other things, unexpected regulatory actions or delays or

government regulation generally, including an unexpected failure to obtain necessary government approvals for the announced transaction with CSL, or unexpected delays in obtaining

such approvals; the potential that the strategic benefits, synergies or opportunities expected from the transactions with GSK, Lilly or CSL may not be realized or may take longer to

realize than expected; the inherent uncertainties involved in predicting shareholder returns or credit ratings; the uncertainties inherent in research and development, including

unexpected clinical trial results and additional analysis of existing clinical data; the Company’s ability to obtain or maintain proprietary intellectual property protection, including the

ultimate extent of the impact on the Company of the loss of patent protection and exclusivity on key products which will continue this year; unexpected manufacturing or quality issues;

global trends toward health care cost containment, including ongoing pricing pressures; uncertainties regarding actual or potential legal proceedings, including, among others, actual or

potential product liability litigation, litigation and investigations regarding sales and marketing practices, government investigations and intellectual property disputes; general economic

and industry conditions, including uncertainties regarding the effects of the persistently weak economic and financial environment in many countries; uncertainties regarding future

global exchange rates; uncertainties regarding future demand for our products; uncertainties involved in the development of new healthcare products; uncertainties regarding potential

significant breaches of data security or disruptions of the Company’s information technology systems; and other risks and factors referred to in Novartis AG’s current Form 20-F on file

with the US Securities and Exchange Commission. Novartis is providing the information in this presentation as of this date and does not undertake any obligation to update any forward-

looking statements as a result of new information, future events or otherwise.

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation 2

Agenda

Group overview Joseph Jimenez, Chief Executive Officer

Financial review Harry Kirsch, Chief Financial Officer

Pharmaceuticals David Epstein, Division Head, Novartis Pharmaceuticals

Closing Joseph Jimenez, Chief Executive Officer

Q&A session Executive team


In Q2 2015, financial and innovation momentum continues

Sales of USD 12.7 billion, up +6% versus PY in cc1

Core operating income +6% in cc1

Pharmaceuticals momentum, strong Sandoz performance and weak Alcon quarter

Entresto™ and Glatopa™ launched in the US2

1 All growth shown vs. PY in constant currencies (cc), rounded. All numbers refer to continuing operations (incl. the newly acquired oncology assets and the OTC JV in 2015) and do not include divested businesses. An

explanation of continuing operations can be found on page 42 of the Condensed Interim Financial Report 2 Entresto launched July 7, not in Q2 2015


Summary of Q2 2015 financial results

1 Continuing operations are defined on page 42 of the Condensed Interim Financial Report. Constant currencies (cc), core results, and free cash flow are non-IFRS measures. An explanation of these measures and

reconciliation tables can be found beginning on page 52 of the Condensed Interim Financial Report.

Q2 Continuing operations1

(in USD bn) 2015 % USD % cc

Net Sales 12.7 -5 6

Core Operating Income 3.6 -7 6

Operating Income 2.3 -28 -14

Net Income 1.9 -32 -18

Core EPS (USD) 1.27 -7 7

EPS (USD) 0.77 -31 -16

Free Cash Flow 2.1 -23

Change vs. PY


Deliver strong

Financial Results

Complete the

Portfolio Transformation

Capture

Cross-Divisional Synergies

Strengthen

Innovation

Build a

High-Performing Organization

Our priorities for 2015 are clear

1

4

2

3

5


Deliver strong

Financial

Results1 1

Pharmaceuticals: Strong sales growth and margin expansion in Q2

4

2

3

5

+6%

Sales

+9%

Core operating

income

Growth Products2 sales +38%

Emerging Growth Markets3 sales +10%

Absorbed generic impact e.g., Diovan®, Exforge®

+

+ +

1 All growth shown vs. PY in constant currencies (cc) 2 “Growth Products” comprise products launched in a key market (EU, US, Japan) in 2010 or later, or products with exclusivity in key markets until at least 2019. They include

the acquisition effect of the GSK oncology assets. 3 “Emerging Growth Markets” comprise all markets except the US, Canada, Western Europe, Japan, Australia and New Zealand


US sales +23%, driven by Glatopa™, Dermatology

Biopharmaceuticals2 sales +57%

Margin Accretion: ROS improvement of 2.6 ppts

Deliver strong

Financial

Results1 1

Sandoz: Very strong performance in Q2

4

2

3

5

+11%

Sales

+30%

Core operating

income

+

+ +

1 All growth shown vs. PY in constant currencies (cc) 2 Includes biosimilars, biopharmaceutical contract manufacturing and Glatopa™


Deliver strong

Financial

Results1 1

Alcon: Weak Q2


4

2

3

5

-10%

1 All growth shown vs. PY in constant currencies (cc)

0%

Emerging markets slowdown

IOL competitive pressure

Contact lens care decline

-

-

-

Sales Core operating

income

Next-Gen pre-loaded IOL

New IOL platform: best-

in-class material, optics,

and mechanics

Short-term Mid- to long-term

Alcon is taking short and long term actions to turn performance,

but will take time

1

4

3

5

2 Strengthen

Innovation

AcrySof®

PanOptix®

Dailies Total1®

RTH258: Positive Ph II data

in wet AMD

UltraSertTM


Entresto™ approved and launched in US


Strengthen

Innovation

1

4

3

5

2

1 McMurray et al. NEJM 2014;371:993–1004; Packer et al. Circulation 2015;131:54-61

2 Individual components of primary endpoint

3 Mozaffarian D, Benjamin EJ, Go AS, et al. Heart Disease and Stroke Statistics – 2015 Update: A Report from the American Heart Association. Circulation. 2015;131:e242-e248

4 Decision Resources Patient Base 2012

5 LEK research and LCZ696 Dual Workstream Plan in HFrEF and HFpEF, Marketing Sciences. Oct 2012

20% 21%

Reduction in

CV mortality1,2

First hospitalizations

for HF1,2

~6m Americans with HF3

~2m eligible patients4,5

20%

Progress in immuno-oncology continues

1

4

3

5

2 Strengthen

Innovation

PD-1, LAG-3 entered clinic, CSF-1 dosing

imminently, TIM-3 expected in 2015

STING and GITR first-in-human expected 2016

CTL019: >150 patients dosed; first cells

processed at commercial facility


First FDA approved substitutable generic

version of Copaxone® 20 mg1

Launched June 18, 2015 with positive

reception

Glatopa™ joins Novartis’ strong MS portfolio

(e.g., Gilenya®, Extavia®)

Glatopa™ US launch strengthens our Multiple Sclerosis portfolio

1

4

3

5

2

Glatopa™

Multiple sclerosis

1 20 mg one-time-daily injection. Copaxone® is a registered trademark of Teva

Strengthen

Innovation


1

4

2

5

Portfolio changes on track

3

Oncology sales grew 30% (cc) vs. PY in Q2

Transfer of marketing authorizations complete for ~75% of sales

Field forces operational in over 50 markets Complete the

Portfolio Transformation

Separations on track, ~13,000 associates transferred

Influenza Vaccines divestment to CSL on track for H2 2015

Oncology

OTC JV, Vaccines, Animal Health


1

2

3

5

NBS is executing on its objectives

4

9,000 people transferred as of end of Q2

5 locations selected for Global Service Centers; offshoring scaling up

Implementation underway to reduce IT applications by 40%

Capture

Cross-Divisional Synergies


1

4

2

3

Strong Quality performance across divisions


5 1 Results status as of June 30, 2015, for continuing operations: Pharmaceuticals, Alcon and Sandoz. The outcome of two FDA inspections of manufacturing sites in India, which

were conducted in August 2014, are still pending.

Build a High-Performing Organization

Sandoz

Alcon

Pharmaceuticals 100%

100%

100%

Number of inspections

% Inspections good or acceptable1

35

17

27

Agenda







Q2 Change vs. PY H1 Change vs. PY

(in USD m) 2015 % USD % cc 2015 % USD % cc

Net Sales 12 694 -5 6 24 629 -6 4

Core Operating Income 3 593 -7 6 7 244 -5 8

Operating Income 2 281 -28 -14 5 066 -16 -1

Net Income 1 856 -32 -18 4 162 -20 -5

Core EPS (USD) 1.27 -7 7 2.60 -4 9

EPS (USD) 0.77 -31 -16 1.72 -18 -3

Free Cash Flow 2 064 -23 3 529 -8

Net sales grew 6% in the quarter, with core operating leverage

in both Q2 and H1

1 An explanation of continuing operations can be found on page 42 of the Condensed Interim Financial Report

Continuing operations1


-5

6

11

12

USD growth

Currency -11

CC growth

Generics impact1 -5

Growth before Gx

Price -1

Volume before Gx

-7

6

19

21

-13

-2

-13

Sales volume more than offsetting generic impact

Continuing operations Q2 2015 (growth vs. PY in %)

Core operating income Net sales

1 Generics impact on sales amounted to USD 0.7 billion for Q2 2015


-9-11-10

-6

-10-2

Negative currency impact in Q2 from strong USD

Net sales Core operating income

Currency impact vs. PY (in % pts)

2014

Q1 Q2 Q3 Q4

FY impact: -2%

FY1

2015

Q1

2014

Q1 Q2 Q3 Q4

FY impact: -5%

FY1

-13-13

-8

-3-3-6

-13 to -14

Q1 Q2

2015

Q2

1 Assuming mid-July exchange rates prevail for the remainder of the year


Q2 2015

Net sales

change vs. PY

Core operating

income

change vs. PY Core ROS

Core margin

change vs. PY

(in % cc) (in % cc) (%) (% pts cc)

Pharmaceuticals 6 9 31.6 1.0

Alcon 0 -10 31.1 -3.7

Sandoz 11 30 18.5 2.6

Q2 continuing operations 6 6 28.3 0.3

H1 continuing operations 4 8 29.4 0.9

Core margin improved due to Pharmaceuticals and Sandoz


Alcon Q2 key performance drivers and full-year outlook


Alcon Division net sales growth

(% in cc)

Phasing Pharma seasonal products

Trade inventory reduction

IOL competitive pressure

Contact lens care decline

Lower surgical equipment

Full-year Alcon sales guidance lowered to “low single-digit” growth (in cc)

2%

Prior 4 Quarter

average

5.5%

Q2 2015

underlying

Q2 2015

reported

0%

1

1 Average of Alcon Division Q2 2014 to Q1 2015 growth (in cc)

Q2 2015

underlying

2%

Q2 core margin significantly above prior year due to both

portfolio transformation and productivity improvements


0.3

3.0

Portfolio

Transformation

Fx Q2 2014 Total

Group Core ROS

Sales and Productivity

28.3

Q2 2015 Continuing

Operations Core ROS

-0.9

25.9

+2.4pts

Core margin USD at period rates (in % pts)

H1 free cash flow was USD 3.5 bn

Key drivers vs. PY

Negative currency impact

Hedging gains

Favorable net working capital1

3.5

-0.3

H1 2015 H1 2014

3.8

1 Free cash flow from net working capital defined as free cash flow from changes in inventory, trade receivables and trade payables

Continuing operations free cash flow (in USD bn)


Net debt increased mainly due to GSK oncology acquisition

(in USD bn)

1 Total Group including discontinued operations 2 Related to employee participation programs 3 Mainly from tax payments on divestments

-0.9-2.1

-16.0

-6.6

-17.4

-6.5

Free Cash Flow 1

3.2

Dec 31,

2014

-10.9

Jun 30,

2015

Others3 Share

repurchases

Proceeds

from options

exercised2

1.6

Net proceeds

from portfolio

transformation

transactions

9.9

Acquired GSK

oncology

assets

Dividends


Full year outlook for continuing operations confirmed

Barring unforeseen events

Continuing operations net sales expected to grow mid-single digit (cc):

• Pharmaceuticals: confirmed at mid-single digit growth (cc)

• Alcon: revised downward to low-single digit growth (cc)

• Sandoz: revised upward to high-single digit growth (cc)

Continuing operations core operating income expected to grow ahead of sales at a high-single digit rate (cc)


Agenda







Q2 Q2 Change vs. PY

(in USD m) 2015 2014 % USD % cc

Net Sales 7 847 8 199 -4 6

Core Operating Income 2 477 2 593 -4 9

Operating Income 1 986 2 406 -17 -4

Core Operating Income Margin 31.6% 31.6%

Operating Income Margin 25.3% 29.3%

Pharmaceuticals Division delivered leverage with solid growth (cc)

in both sales and core operating income


Pharmaceuticals Growth Products net sales in Q2 (in USD bn, growth in % cc)

% of total division sales

34% 44%

Q2 2015

+38% cc

Q2 2014

3.5

2.8

Growth Products now represent 44% of total division sales


Emerging Growth Markets represented 26% of total division sales

Pharmaceuticals Division net sales in Q2 (share in %, growth in % cc)

26%

74%

Established Markets Emerging Growth Markets1

+10% vs. PY in Q2

+5% vs. PY in Q2


1 All markets excluding the US, Canada, Western Europe, Japan, Australia, and New Zealand

Indication

Q2 2015

Net sales

(USD m)

Q2 2015

Growth vs. PY

(% cc)

MS 700 26

wAMD, DME, RVO, mCNV 537 2

aRCC, TSC/SEGA, pNET, HR+/HER2 aBC 423 19

CML 412 21

Type 2 diabetes mellitus 273 -1

Severe allergic asthma and CSU/CIU 194 18

aRCC 165 n/a

COPD 151 57

BRAF V600+ metastatic melanoma 131 n/a

Thrombocytopenia6 and SAA 116 n/a

MF and PV 98 68

Unparalleled growth platform1 with exclusivity to 2019 and beyond

1 Selected key products for growth of Pharmaceuticals Division 2 Impacted by Galvus® in Germany, where distribution was stopped July 1, 2014; excluding Germany, Q2 2015 growth vs. PY was +5% (cc) 3 Onbrez® Breezhaler® approved as Arcapta® Neohaler® in the US

2

4 4

4 Net sales and growth of Onbrez®, Seebri® and Ultibro®

5 Net sales of Tafinlar® and Mekinist® 6 cITP and thrombocytopenia associated with hepatitis C

5

3


http://www.novartisoncology.com/products/jakavi.jsp

Oncology achieved strong growth momentum

Oncology Franchise net sales (in USD m, growth in % cc)

Sales grew 30% vs. PY in Q2

Base business grew 11% vs. PY in Q2

New assets sales (USD 0.5 bn) represented 15% of total Oncology sales

Integration of new assets and onboarding of new associates progressing well

Base business1 New assets2

1 Continuing Oncology assets unaffected by the GSK transaction 2 Assets acquired in the GSK transaction which closed on March 2, 2015. These include among others Votrient®, Promacta®, Tafinlar® and Mekinist®

3 536

Q2 2015

Q2 2014

2 951

+30% cc

+11% cc


Tafinlar® / Mekinist®: Sales growth, new data in melanoma

and breakthrough designation in NSCLC

EU & JP submissions completed

in melanoma3

Regulatory

milestones

Breakthrough therapy designation

in BRAF V600E+ NSCLC4

Compelling clinical data in

BRAF V600+ metastatic melanoma1

Low (11%) discontinuation

rate

25.1 months median overall

survival

1 COMBI-d results in BRAF V600E/K+ metastatic melanoma. Ph III study with 423 patients. Long et al. Lancet 31 May 2015 (on-line publication http://dx.doi.org/10.1016/S0140-6736(15)60898-4) 2 Net sales of Tafinlar® and Mekinist®

3 Submission of 1st line combination therapy (Tafinlar® + Mekinist®) in unresectable or metastatic melanoma with BRAF V600E or V600K mutations in both EU and Japan achieved in Q2 4 FDA Breakthrough Therapy designation for combination therapy in BRAF V600E+ NSCLC obtained in July 2015; Tafinlar® monotherapy received FDA Breakthrough Therapy designation in this indication in January 2014

USD 131 m net sales2

in Q2 2015

Strong commercial

performance

Jan 2014 combination

launched in US


http://dx.doi.org/10.1016/S0140-6736(15)60898-4

http://dx.doi.org/10.1016/S0140-6736(15)60898-4

http://dx.doi.org/10.1016/S0140-6736(15)60898-4

http://dx.doi.org/10.1016/S0140-6736(15)60898-4

http://dx.doi.org/10.1016/S0140-6736(15)60898-4

http://dx.doi.org/10.1016/S0140-6736(15)60898-4

Increased usage

of Tasigna® in 1st

line CML patients

in the US

ENEST1st results

confirmed the

benefit of 1st line

Tasigna® in newly-

diagnosed CML

Growth driven by

US launch of

Jadenu™

ECLIPSE study

(Exjade® vs.

Jadenu™)

expected in H2

2016

Growth in MF

indication across

geographies

Jakavi® launched

in PV in Germany

(Apr)

US approval in

pediatric cITP

(Jun)

EU approval in

SAA expected in

H2 2015

Farydak™

approved in US

(Feb) and Japan

(Jul)

CHMP positive

opinion (Jun)

Hematology portfolio: Sales growth, launches and approvals

1 Net sales in Q2 in USD million and growth in cc vs. PY 2 Jakavi® is in-licensed from Incyte Corporation ex-US; Incyte markets product as Jakafi® in the US

USD 262m USD 98m USD 116m nm

2


USD 412m +21%1 n/a +68%1 +17%1

Afinitor® delivered double-digit growth

Sales grew 19% vs. PY in Q2

RADIANT-4 met its primary endpoint1

• Regulatory filings expected in H2 2015

• Prevalence of advanced GI / Lung NET is estimated at appr. 80k patients2,3

• Pending final label 30-40% of these patients are expected to be eligible3

RECORD-4 results (Ph II)4 reinforce efficacy (PFS) in 2nd line aRCC

Afinitor® net sales (in USD m, growth in % cc)

8% 5%

Q2 2014

384

54%

26%

7% 10%

4%

+19% cc

Q2 2015

423

54%

22%

10%

pNET

RCC

TSC/SEGA

BC

Other

+21%

+80%

+4%

+5%

+29% 5

1 The primary endpoint was met: significant extension of PFS compared to placebo plus best supportive care (Novartis Press Release, 21 May 2015) 2 Estimated prevalence in US, Top-5 EU, Japan 3 Novartis estimate 4 Motzer R, Alyasova A, Ye D, et al. RECORD-4: A multicenter, phase II trial of second-line everolimus in patients with mRCC. J Clin Oncol 33, 2015 (suppl; abstract # 4518) 5 Indeterminate usage


COPD portfolio3 grew 57% vs. PY in Q2

Ultibro® was the first to market dual

bronchodilator (LABA/LAMA) in the EU

and Japan

Most recent launches included Italy (May)

Value share uptake since launch1,2

(in %)

Ultibro® Breezhaler® outperformed competitors1,2

Months Since Launch

1 IMS Midas Monthly, April 2015; Value share calculated in LABA, LAMA, ICS/LABA, LABA/LAMA, PDE-IV drug classes (note: includes sales from asthma as well) 2 Only markets where both Ultibro® and its LABA/LAMA competitors have launched. These six markets in the EU include Germany and the UK 3 COPD portfolio consists of Onbrez®, Seebri® and Ultibro® Breezhaler®

2.8%

2.6%

1.7%

1.3%

0.8%

0.4%0.2%

0.4%

0.1%

0%

1%

2%

3%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

0.1%

2.0% Competitor 2

Ultibro® Breezhaler®

Competitor 1


Cosentyx® built further momentum in psoriasis

Worldwide sales of USD 30 m in Q2

US launch2

• Cumulatively >6,500 SRFs3 in process / processed

• Patient support programs bridge gap between demand and access

• Around 130k moderate-to-severe psoriasis patients are estimated to be on biologics4

New data in difficult-to-treat psoriasis (which affects ~50% of patients), strengthen clinical profile5,6

Regulatory filings in US and EU completed for AS and PsA in Q2

4 Novartis estimate for the segment of patients on biologics (Bx) based on IMS and Decision Resources

5 Gottlieb A, et al. Oral presentation 23rd World Congress of Dermatology 2015, 11 June 2015 6 Reich K, et al. Poster presented at 23rd World Congress of Dermatology 2015. Poster # 3086561

0

1,000

2,000

3,000

Feb Mar Apr May Jun

Dispensed Rx (IMS)

1 Dispensed Rx’s as per IMS 2 Approval on 23 January 2015 and product commercially available since March 2015 3 Service Request Forms (SRFs)

Cosentyx® demand in the US (Monthly Rx1)


Entresto™: First major approval achieved

Entresto™ achieved first

approval in the US on July 7

Product shipped and Field

Force is interacting with

customers

Indication includes “reduce[s]

the risk of cardiovascular death

and hospitalization for heart

failure”

Superiority vs. enalapril also

included in label

CHMP opinion expected in Q4

Submission for HFpEF

expected in 2019, based on

outcome of ongoing

PARAGON trial


Arzerra®

BKM120

LDE225

Afinitor®

Entresto™

LCZ696

QVA149 / NVA237

Submission for CLL maintenance and CLL relapse in US and EU1

Submission for mBC ER+ (Al resistant / mTOR naive) in US, EU & Japan

FDA action and CHMP opinion2 in advanced basal cell carcinoma

Submission for advanced non-functional GI and lung NET in US, EU & Japan

FDA action in chronic heart failure with reduced ejection fraction3

CHMP opinion in chronic heart failure with reduced ejection fraction

FDA action in chronic obstructive pulmonary disease (COPD)

H1 2015

Cosentyx®

Cosentyx®

Jakavi®

Cosentyx®

Zykadia™

Jadenu™

Tafinlar® + Mekinist®

Farydak®

FDA action in psoriasis

EU approval in psoriasis

CHMP opinion in polycythemia vera

Regulatory filings in US and EU for ankylosing spondylitis and psoriatic arthritis

CHMP opinion in ALK+ NSCLC

FDA action in new formulation film-coated tablets

Submission in EU and Japan for metastatic melanoma

Multiple myeloma FDA approval, PMDA approval, CHMP positive opinion

H2 2015

Achieved and expected highlights from Pharmaceuticals newsflow

1 Arzerra® submitted in EU for CLL maintenance in July 2 Positive CHMP opinion for LDE225 (Odomzo®) obtained in June 3 EntrestoTM approval obtained in July


Agenda






40 | Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Financial and innovation momentum continues

On track for full year guidance

EntrestoTM and GlatopaTM launches

Strong pipeline progress

41 | Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Agenda







Appendix

Cosentyx®**

Ankylosing spondylitis

Cosentyx®** Psoriatic arthritis

Afinitor® TSC7 seizures

PKC412 ASM5

PKC412 AML2

BKM120 + fulv mBC1 ER+ AI resistant/mTOR naive 2nd line

Afinitor® Non-functioning GI and Lung NET3

Gilenya® CIDP17

Lucentis®

CNV and ME8

BYM338 sIBM6

Ilaris®

Hereditary periodic fevers

CTL019

Acute lymphoblastic leukemia

Tasigna® CML11 treatment free remission

ACZ885 Sec. prev. cv events14

KAE609 Malaria

LCI699 Cushing’s disease

Afinitor®

DLBCL16

BGS649 OHH21

BYM338 Hip fracture

CAD106 Alzheimer’s disease

BAF312 Multiple sclerosis

QGE031 Asthma

QAW039 Asthma

BCT197 COPD20

LCZ696

Heart failure (PEF)22

QAX576 Allergic diseases

HSC835 Stem cell transplantation

BYL719 Solid tumors

BGJ398 Solid tumors

LJM716 Solid tumors

BKM120 Solid tumors

LEE011 Solid tumors

Lucentis®

ROP19

Tekturna®

Heart failure12

Signifor® LAR13 Cushing’s disease

2017 2019 2015 2016

RLX030 Acute heart failure

E10030***

Wet AMD

FCR001 Renal transplantation

BKM120 + fulv mBC1 ER+ post Al and mTOR inhibitor

3rd line

CTL019 DLBCL16

INC280 NSCLC10

2018

EGF816 Solid tumors

KAF156 Malaria

BYM338 Sarcopenia

LEE011 + ltz HR+, HER2 (-) postmenopausal

Adv. BC1 1st line

CJM112 Immune disorders

PIM447 Hematological tumors

Arzerra®

CLL4 (relapse)

Arzerra®*

CLL4 (maintenance)


BRAF V600+ NSCLC10

Promacta®/ Revolade® MDS9/AML2 assoc. thrombocytopenia

Arzerra®

NHL15 (refractory)

Votrient®

Renal cell carcinoma (adjuvant)

Promacta®/ Revolade®

MDS9

Tafinlar® + Mekinist® BRAF V600+ Melanoma (adjuvant)

Arzerra®

NHL15 (relapse)

ABL001 CML11

ASB183 Solid and hematological tumors

Planned filings 2015 to 2019


QVM149 Asthma

QMF149 Asthma

LEE011+ fulv HR+, HER2(-) postmenopausal

Adv. BC1 1st /2nd line

LEE011+ tmx + gsn/or NSAI + gsn HR+, HER2(-) premenopausal

Adv. BC1 1st line

QAW039 Atopic dermatitis


BRAF V600+ Colorectal cancer

EMA401**** Neuropathic pain

Zykadia™ ALK+ NSCLC10

(1st line, treatment naive)

Zykadia™ ALK+ NSCLC10

(Brain metastasis)

Cosentyx®

nrAxSpA18

New molecule

New indication

New formulation

1. Breast Cancer 2. Acute myeloid leukemia 3. Neuroendocrine tumors 4. Chronic lymphocytic leukemia 5. Aggressive systemic mastocytosis

6. Sporadic inclusion body myositis 7. Tuberous sclerosis complex 8. Choroidal neovascularization (CNV) and

macular edema (ME) secondary to conditions other than macular degeneration, diabetic macular edema retinal vein occlusion and pathologic myopia

9. Myelodysplastic syndrome 10. Non-small cell lung cancer 11. Chronic myeloid leukemia

Combination Abbreviations: fulv fulvestrant ltz letrozole tmx tamoxifen gsn goserelin NSAI Non-steroidal aromatase inhibitor

12. Reduction of CV death/hospitalization in chronic heart failure patients

13. Long-acting release

14. Secondary prevention of cardiovascular events

15. Non-Hodgkins lymphoma

16. Diffuse large B-cell lymphoma 17. Chronic inflammatory demyelinating

polyradiculoneuropathy 18. Non-radiographic axial spondyloarthritis 19. Retinopathy of prematurity 20. Chronic obstructive pulmonary disease 21. Obese hypogonadotropic hypogonadism

22. Preserved ejection fraction

Regulatory application submitted in EU July 2015

Regulatory submissions filed in EU and US in Q2

2015

Also known as OAP030. E10030 (Fovista®) is

being developed by Ophthotech Corp.

Ophthotech has licensed ex-US

commercialization rights to Novartis under a

Licensing and Commercialization Agreement

Spinifex transaction signed on June 27; closing

pending and expected in the second half of 2015

* **

***

****

CNP520 Alzheimer’s disease

Key Definitions

This presentation contains several important words or phrases that we define as below:

aBC: advanced Breast Cancer

AI: Aromatase Inhibitor

ALK+ NSCLC: Anaplastic Lymphoma Kinase positive (ALK+) Non-Small Cell Lung Cancer (NSCLC)

Approval: In Pharmaceuticals, Alcon and Vaccines in US and EU; each indication and regulator

combination counts as approval; excludes label updates, CHMP opinions alone, and minor approvals

aRCC: advanced Renal Cell Cancer

ASH: American Society of Hematology

Base business: Continuing Oncology assets unaffected by the GSK transaction

BC: Breast Cancer

cITP: chronic Immune ThrombocytoPenia

CML: Chronic Myeloid Leukemia

COPD: Chronic Obstructive Pulmonary Disease

CHMP: Committee for Medicinal Products for Human Use

CSU / CIU: Chronic Spontaneous Urticaria / Chronic Idiopathic Urticaria

DME: Diabetic Macular Edema

Emerging Growth Markets (EGM): All markets excluding the US, Canada, Western Europe, Japan,

Australia, and New Zealand

ER+: Estrogen Receptor positive

FDA: US Food and Drug Administration

Growth Products: Products launched in a key markets (EU, US, Japan) in 2010 or later, or products with

exclusivity in key markets until at least 2019 (except Sandoz, which includes only products launched in the

last 24 months). They include the acquisition effect of the GSK oncology assets

HFpEF: Heart Failure with preserved Ejection Fraction

HR+/HER2-: Hormone Receptor positive / Human Epidermal growth factor Receptor 2 negative

In cc: In constant currencies

LABA: Long-Acting Beta-adrenoceptor Agonists (β2-agonists)

LAMA: Long-Acting Muscarinic receptor Antagonist

mBC: metastatic Breast Cancer

mCNV: Choroidal Neovascularization (CNV) secondary to pathologic myopia (myopic CNV)

MF: MyeloFibrosis

mRCC: metastatic Renal Cell Carcinoma

mTOR: mammalian Target Of Rapamycin

MS: Multiple Sclerosis

NEJM: New England Journal of Medicine

New assets: Assets acquired in the GSK transaction which closed on March 2, 2015

NSCLC: Non-small cell lung cancer

OS: Overall Survival

PFS: Progression Free Survival

PMDA: Pharmaceuticals and Medical Devices Agency (Japan)

pNET: pancreatic NeuroEndocrine Tumor

PV: Polycythemia Vera

RCC: Renal Cell Carcinoma

RVO: Retinal Vein Occlusion

SAA: Severe Aplastic Anemia

TSC/SEGA: Tuberous Sclerosis Complex Subependymal Giant Cell Astrocytoma

wAMD: Wet (neovascular) Age-related Macular Degeneration


Documents

Aaaq2 2015 Ir Presentation