\n| \n \n(5)<\/p>\n<\/td>\n | | \n\n \nCore effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. For additional information, see the explanation regarding reconciliation of forward-looking guidance in the ‘Non-IFRS measures as defined by the Company’ section.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Cautionary Note Regarding Forward-Looking Statements<\/b><\/p>\n \nThis press release contains, and our officers and representatives may from time to time make, certain \u201cforward-looking statements\u201d 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 \u201canticipate,\u201d \u201cintend,\u201d \u201ccommitment,\u201d \u201clook forward,\u201d \u201cmaintain,\u201d \u201cplan,\u201d \u201cgoal,\u201d \u201cseek,\u201d \u201ctarget,\u201d \u201cassume,\u201d \u201cbelieve,\u201d \u201cproject,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cstrategy,\u201d \u201cfuture,\u201d \u201clikely,\u201d \u201cmay,\u201d \u201cshould,\u201d \u201cwill\u201d and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our liquidity, revenue, gross margin, operating margin, effective tax rate, foreign currency exchange movements, earnings per share, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our transformation program, market growth assumptions, our sustainability and diversity plans, targets, goals and expectations, and generally, our expectations concerning our future performance.<\/p>\n \nForward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our 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 as:<\/p>\n \n- \ncybersecurity breaches or other disruptions of our information technology systems;<\/p>\n<\/li>\n
- \ncompliance with data privacy, identity protection and information security laws;<\/p>\n<\/li>\n
- \nour ability to comply with the US Foreign Corrupt Practices Act of 1977 and other applicable anti-corruption laws, particularly given that we have entered into a three-year Deferred Prosecution Agreement with the US Department of Justice;<\/p>\n<\/li>\n
- \nthe impact of a disruption in our global supply chain or important facilities;<\/p>\n<\/li>\n
- \nsupply constraints and increases in the cost of energy;<\/p>\n<\/li>\n
- \nour ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers;<\/p>\n<\/li>\n
- \nour ability to manage environmental, social and governance matters to the satisfaction of our many stakeholders, some of which may have competing interests;<\/p>\n<\/li>\n
- \nour success in completing and integrating strategic acquisitions;<\/p>\n<\/li>\n
- \nthe success of our research and development efforts, including our ability to innovate to compete effectively;<\/p>\n<\/li>\n
- \nglobal and regional economic, financial, legal, tax, political and social change;<\/p>\n<\/li>\n
- \nour ability to comply with all laws to which we may be subject;<\/p>\n<\/li>\n
- \npricing pressure from changes in third party payor coverage and reimbursement methodologies;<\/p>\n<\/li>\n
- \nour ability to properly educate and train healthcare providers on our products;<\/p>\n<\/li>\n
- \nour reliance on outsourcing key business functions;<\/p>\n<\/li>\n
- \nour ability to attract and retain qualified personnel;<\/p>\n<\/li>\n
- \nthe impact of unauthorized importation of our products from countries with lower prices to countries with higher prices;<\/p>\n<\/li>\n
- \nthe ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing;<\/p>\n<\/li>\n
- \nour ability to protect our intellectual property;<\/p>\n<\/li>\n
- \nour ability to service our debt obligations;<\/p>\n<\/li>\n
- \nthe need for additional financing through the issuance of debt or equity;<\/p>\n<\/li>\n
- \nthe effects of litigation, including product liability lawsuits and governmental investigations;<\/p>\n<\/li>\n
- \neffect of product recalls or voluntary market withdrawals;<\/p>\n<\/li>\n
- \nthe accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets;<\/p>\n<\/li>\n
- \nlegislative, tax and regulatory reform;<\/p>\n<\/li>\n
- \nthe impact of being listed on two stock exchanges;<\/p>\n<\/li>\n
- \nthe ability to declare and pay dividends;<\/p>\n<\/li>\n
- \nthe different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; and<\/p>\n<\/li>\n
- \nthe effect of maintaining or losing our foreign private issuer status under U.S. securities laws.<\/p>\n<\/li>\n<\/ul>\n
\nAdditional factors are discussed in our filings with the United States Securities and Exchange Commission, including our 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 in this press release speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise.<\/p>\n Intellectual Property<\/b><\/p>\n \nThis report may contain references to our proprietary intellectual property. All product names appearing in italics <\/i>or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a “\u00ae” or a “\u2122” are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.<\/p>\n Non-IFRS measures as defined by the Company<\/b><\/p>\n \nAlcon 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, free cash flow, and net (debt)\/liquidity.<\/p>\n \nBecause 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 supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures.<\/p>\n Core results<\/span><\/p>\n\nAlcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss (“FVPL”), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, obligations related to product recalls, and certain acquisition related items. The following items that exceed a threshold of $10 million and are deemed exceptional are also excluded from core results: integration and divestment related income and expenses, divestment gains and losses, restructuring charges\/releases and related items, legal related items, gains\/losses on early extinguishment of debt or debt modifications, past service costs for post-employment benefit plans, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a $10 million threshold.<\/p>\n \nTaxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions.<\/p>\n \nAlcon believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since they exclude items that can vary significantly from period to period, the core measures enable a helpful comparison of business performance across periods. For this same reason, Alcon uses these core measures in addition to IFRS and other measures as important factors in assessing its performance.<\/p>\n \nA limitation of the core measures is that they provide a view of Alcon operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization\/impairments of purchased intangible assets and restructurings.<\/p>\n Constant currencies<\/span><\/p>\n\nChanges in the relative values of non-US currencies to the US dollar can affect Alcon’s financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, we present information about changes in our net sales and various values relating to operating and net income that are adjusted for such foreign currency effects.<\/p>\n \nConstant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the Consolidated Income Statement excluding:<\/p>\n \n- \nthe impact of translating the income statements of consolidated entities from their non-US dollar functional currencies to the US dollar; and<\/p>\n<\/li>\n<\/ul>\n
\n- \nthe impact of exchange rate movements on the major transactions of consolidated entities performed in currencies other than their functional currency.<\/p>\n<\/li>\n<\/ul>\n
\nAlcon calculates constant currency measures by translating the current year’s foreign currency values for sales and other income statement items into US dollars, using the average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars.<\/p>\n Free cash flow<\/span><\/p>\n\nAlcon defines free cash flow as net cash flows from operating activities less cash flow associated with the purchase or sale of property, plant and equipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator of Alcon’s ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS.<\/p>\n Net (debt)\/liquidity<\/span><\/p>\n\nAlcon defines net (debt)\/liquidity as current and non-current financial debt less cash and cash equivalents, current investments and derivative financial instruments. Net (debt)\/liquidity is presented as additional information because management believes it is a useful supplemental indicator of Alcon’s ability to pay dividends, to meet financial commitments and to invest in new strategic opportunities, including strengthening its balance sheet.<\/p>\n Growth rate and margin calculations<\/span><\/p>\n\nFor ease of understanding, Alcon uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared to the prior year is shown as a positive growth.<\/p>\n \nGross margins, operating income\/(loss) margins and core operating income margins are calculated based upon net sales to third parties unless otherwise noted.<\/p>\n Reconciliation of guidance for forward-looking non-IFRS measures<\/span><\/p>\n\nThe forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable efforts, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. These items are uncertain, depend on many factors and could have a material impact on our IFRS results for the guidance period.<\/p>\n Financial tables<\/b><\/p>\n Net sales by region<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Three months ended March 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n($ millions unless indicated otherwise)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnited States<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,078<\/p>\n<\/td>\n | | \n\n \n46%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n939<\/p>\n<\/td>\n | | \n\n \n43%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInternational<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,255<\/p>\n<\/td>\n | | \n\n \n54%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,236<\/p>\n<\/td>\n | | \n\n \n57%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net sales to third parties<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2,333<\/b><\/p>\n<\/td>\n | | \n\n 100%<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2,175<\/b><\/p>\n<\/td>\n | | \n\n 100%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Consolidated Income Statement (unaudited)<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Three months ended March 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n($ millions except earnings per share)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net sales to third parties<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2,333<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2,175<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther revenues<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n19<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n14<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net sales and other revenues<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2,352<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2,189<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of net sales<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,030<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(967<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of other revenues<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(17<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(14<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross profit<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 1,305<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 1,208<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSelling, general & administration<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(785<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(741<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nResearch & development<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(202<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(166<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther income<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther expense<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(55<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(64<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating income<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 268<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 246<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInterest expense<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(47<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(29<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther financial income & expense<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(8<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(17<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income before taxes<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 213<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 200<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTaxes<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(39<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(32<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 174<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 168<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEarnings per share ($)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.35<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.34<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.35<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.34<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWeighted average number of shares outstanding (millions)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n492.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n490.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n495.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n494.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Balance sheet highlights<\/b><\/p>\n\n\n| \n \n($ millions)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n March 31, 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n December 31, 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nCash and cash equivalents<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n889<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n980<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent financial debts<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n102<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n107<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-current financial debts<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n4,584<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n4,541<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Free cash flow<\/b><\/p>\n \nThe following is a summary of free cash flow for the three months ended March 31, 2023 and 2022, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n($ millions)<\/p>\n<\/td>\n | | \n\n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net cash flows from operating activities<\/b><\/p>\n<\/td>\n | | \n\n 85<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 66<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPurchase of property, plant & equipment<\/p>\n<\/td>\n | | \n\n \n(104<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(118<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Free cash flow<\/b><\/p>\n<\/td>\n | | \n\n (19<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (52<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Net (debt)\/liquidity<\/b><\/p>\n\n\n| \n \n($ millions)<\/p>\n<\/td>\n | | \n\n At March 31, 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent financial debt<\/p>\n<\/td>\n | | \n\n \n(102<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-current financial debt<\/p>\n<\/td>\n | | \n\n \n(4,584<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total financial debt<\/b><\/p>\n<\/td>\n | | \n\n (4,686<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Less liquidity:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCash and cash equivalents<\/p>\n<\/td>\n | | \n\n \n889<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDerivative financial instruments<\/p>\n<\/td>\n | | \n\n \n5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total liquidity<\/b><\/p>\n<\/td>\n | | \n\n 894<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net (debt)<\/b><\/p>\n<\/td>\n | | \n\n (3,792<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Reconciliation of IFRS results to core results<\/b><\/p>\n Three months ended March 31, 2023<\/b><\/p>\n\n\n| \n \n($ millions except earnings per share)<\/p>\n<\/td>\n | | \n\n IFRS
\n
<\/b>results<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Amortization of
\n
certain intangible
\n
assets(1)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Transformation
\n
costs(2)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Other
\n
items(4)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Core
\n
<\/b>results<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross profit<\/b><\/p>\n<\/td>\n | | \n\n 1,305<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 169<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \u2014<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 4<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 1,478<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating income<\/b><\/p>\n<\/td>\n | | \n\n 268<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 173<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 26<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 13<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 480<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income before taxes<\/b><\/p>\n<\/td>\n | | \n\n 213<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 173<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 26<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 13<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 425<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTaxes(5)<\/sup><\/p>\n<\/td>\n | \n\n \n(39<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(31<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(5<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(3<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(78<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n 174<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 142<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 21<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 10<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 347<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic earnings per share ($)<\/p>\n<\/td>\n | | \n\n \n0.35<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.70<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted earnings per share ($)<\/p>\n<\/td>\n | | \n\n \n0.35<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.70<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic – weighted average shares outstanding (millions)(6)<\/sup><\/p>\n<\/td>\n | \n\n \n492.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n492.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted – weighted average shares outstanding (millions)(6)<\/sup><\/p>\n<\/td>\n | \n\n \n495.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n495.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nRefer to the associated explanatory footnotes at the end of the ‘Reconciliation of IFRS results to core results’ tables.<\/p>\n Three months ended March 31, 2022<\/b><\/p>\n\n\n| \n \n($ millions except earnings per share)<\/p>\n<\/td>\n | | \n\n IFRS
\n
<\/b>results<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Amortization of
\n
certain intangible
\n
assets(1)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Transformation
\n
costs(2)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Legal
\n
items(3)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n Other
\n
items(4)<\/sup><\/b><\/p>\n<\/td>\n | \n\n Core
\n
<\/b>results<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross profit<\/b><\/p>\n<\/td>\n | | \n\n 1,208<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 140<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \u2014<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \u2014<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 9<\/b><\/p>\n<\/td>\n | | \n\n 1,357<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating income<\/b><\/p>\n<\/td>\n | | \n\n 246<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 146<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 15<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 20<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 21<\/b><\/p>\n<\/td>\n | | \n\n 448<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income before taxes<\/b><\/p>\n<\/td>\n | | \n\n 200<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 146<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 15<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 20<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 21<\/b><\/p>\n<\/td>\n | | \n\n 402<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTaxes(5)<\/sup><\/p>\n<\/td>\n | \n\n \n(32<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(25<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(2<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(5<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u2014<\/p>\n<\/td>\n | | \n\n \n(64<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n 168<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 121<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 13<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 15<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 21<\/b><\/p>\n<\/td>\n | | \n\n 338<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic earnings per share ($)<\/p>\n<\/td>\n | | \n\n \n0.34<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.69<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted earnings per share ($)<\/p>\n<\/td>\n | | \n\n \n0.34<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.68<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBasic – weighted average shares outstanding (millions)(6)<\/sup><\/p>\n<\/td>\n | \n\n \n490.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n490.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted – weighted average shares outstanding (millions)(6)<\/sup><\/p>\n<\/td>\n | \n\n \n494.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n494.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nRefer to the associated explanatory footnotes at the end of the ‘Reconciliation of IFRS results to core results’ tables.<\/p>\n Explanatory footnotes to IFRS to core reconciliation tables<\/b><\/p>\n\n\n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nIncludes recurring amortization for all intangible assets other than software.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nTransformation costs, primarily related to restructuring and third party consulting fees, for the multi-year transformation program.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nIncludes a provision for a legal settlement.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n(4)<\/p>\n<\/td>\n | | \n\n \nFor the three months ended March 31, 2023, Gross profit includes the amortization of inventory fair value adjustments related to a recent acquisition. Operating income also includes integration related expenses for a recent acquisition and fair value adjustments of financial assets.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFor the three months ended March 31, 2022, Gross profit includes charges related to the conflict in Ukraine and amortization of inventory fair value adjustments related to an acquisition. Operating income also includes charges related to the conflict in Ukraine, integration related expenses and fair value adjustments of financial assets.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n(5)<\/p>\n<\/td>\n | | \n\n \nFor the three months ended March 31, 2023, tax associated with operating income core adjustments of $212 million totaled $39 million with an average tax rate of 18.4%.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFor the three months ended March 31, 2022, total tax adjustments of $32 million include tax associated with operating income core adjustments, partially offset by discrete tax items. Tax associated with operating income core adjustments of $202 million totaled $35 million with an average tax rate of 17.3%.<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n(6)<\/p>\n<\/td>\n | | \n\n \nCore basic earnings per share is calculated using the weighted-average shares of common stock outstanding during the period. Core diluted earnings per share also contemplate dilutive shares associated with unvested equity-based awards as described in Note 4 to the Condensed Consolidated Interim Financial Statements.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n About Alcon<\/b><\/p>\n \nAlcon helps people see brilliantly. As the global leader in eye care with a heritage spanning over 75 years, we offer the broadest portfolio of products to enhance sight and improve people\u2019s lives. Our Surgical and Vision Care products touch the lives of people in over 140 countries each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors. Our more than 25,000 associates are enhancing the quality of life through innovative products, partnerships with Eye Care Professionals and programs that advance access to quality eye care. Learn more at www.alcon.com<\/a>.<\/p>\nConnect with us on
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