| SEO Presentation | 4 January 2011 1

Our focus is on patients

Our purpose is to care and cure.
We provide medicines to treat and prevent diseases,
ease suffering and improve quality of life.
| SEO Presentation | 4 January 2011 2
Novartis is a world-leading healthcare company
Leading market position
One of 20 largest companies by market capitalization
Among most respected companies globally
2009 USD billion
Net sales: 44.3
Net income: 8.5
R&D investment: 7.5
Canada and LATAM
US
Europe
Asia/Africa/
Australasia
Sales by region 2009 Key figures
3
The healthcare environment is undergoing
unprecedented change
Aging
population
Unhealthy
lifestyles
Emerging
markets
Advances in
science and
technology
Poor nutritional habits and sedentary
lifestyles are increasing the prevalence
of chronic diseases
Economic growth of emerging countries
is providing healthcare access
New technological discoveries and
trends are enabling the development of
innovative medicines while increasing
the cost of innovation
The world's population is aging. More
healthcare treatments are needed, also
prompting payors to aggressively
manage costs
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Environment Patient needs Novartis portfolio
Pharmaceuticals
Vaccines and
Diagnostics
Sandoz
(Generics)
Consumer Health
(OTC, Animal Health
and CIBA Vision)
Full range
of healthcare
options
Innovative
medicines
Prevention
Affordable
options
Self-care
We believe our portfolio best meets the varied and
often complex needs of patients and societies
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We have a broad healthcare portfolio
Pharmaceuticals
Innovative patent-protected
medicines
Vaccines and
Diagnostics
Vaccines and diagnostic tools
to protect against life-
threatening diseases
Sandoz
Affordable, high-quality generic
medicines and biosimilars
Consumer
Health
Strong, trustworthy brands for
knowledgeable consumers
OTC (Over-the-Counter)
Animal Health CIBA Vision
2009 net sales by division
Sandoz
Pharmaceuticals
V&D
Consumer
Health
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6
Strengthening the healthcare portfolio with Alcon
Eye care segment is highly attractive
Large and profitable segment (USD 25 bn, 20%-30% EBIT)
Dynamic growth (aging population, emerging markets, innovation)
Alcon is the world leader in this attractive segment
Clear No. 1 in surgical and pharmaceutical eye care markets
Strong performance track with double digit top- and bottom-line
Alcon stake expected to strengthen Novartis growth portfolio
Access to one of the fastest growing healthcare areas
Strengthen non-branded Rx businesses and expand in specialty areas
Synergies of portfolios (front vs. back-of-the-eye), manufacturing and
distribution
Diversify risk (fewer generics, more self-pay)
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We seek to constantly innovate
Unrivaled pipeline with approximately 152 projects in
clinical development
Most new US drug approvals in the industry since 2000
One of the industry's biggest investors in research
More than 17% of annual group net sales
reinvested in R&D in 2008
Innovation across the Novartis group
Focusing on unmet medical needs inspires us to
connect science with customer insights to develop
new products and drive industry standards
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Novartis A leading healthcare company
1996 1997 1999 2000 2001 2002 2003 2005 2006 2007 2008
March:
Sandoz and
Ciba-Geigy
announce
merger plans
December:
Formation of
Novartis
May:
ADS listing
on New York
Stock
Exchange
July:
Novartis
one of first
companies
to sign
UN Global
Compact
May:
Initial stake
acquired in
Roche, later
increasing
to 33%
November:
NITD opens
in
Singapore
to research
tropical
diseases
May:
Creation
of Novartis
Institutes for
Biomedical
Research for
pharma-
ceuticals
research
August:
Acquisition
of Lek, a
Slovenian
generics
company
May:
Unification
of all
generics
operations
under
historic
Sandoz
brand
June/July:
Acquisition
of generic
leaders
Hexal and
Eon Labs
August:
Acquisition
of OTC
brands from
Bristol-
Meyers
Squibb
April:
Entry into
human
vaccines
through Chiron
acquisition
February:
Opening of
Novartis
Vaccines Institute
for Global Health
April/July:
Rights to acquire
majority stake in
Alcon, a world
leader in eye
care, from Nestl,
initial 25% stake
purchased in July
March:
Spin-off
of Ciba
Specialty
Chemicals
business
December:
Spin-off of
agribusiness
to form
Syngenta
February:
Sale of
Nutrition
& Sant
business
July:
Sale of Medical
Nutrition
business
September:
Sale of Gerber
baby products
business
Healthcare Other
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Focused diversification in healthcare
2002 1996 2007
45%
80% 100%
Healthcare Other
2009 targeted acquisitions and strategic investments:
EBEWE Pharma
specialty generics
85% stake in
Zhejiang Tianyuan
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Strong performance in all business areas
Sales by division 2009 Sales by region 2009
Consumer
Health
Sandoz
Pharmaceuticals
Company overview
Employees: 99 834
Countries: 140
Headquarters: Basel, Switzerland
2009 USD billion
Net sales: 44.3
Net income: 8.5
R&D investment: 7.5
Key facts
V&D
Canada and LATAM
US
Europe
Asia/Africa/
Australasia
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Gilenya
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Operating responsibly is integral to our success
Corporate citizenship at Novartis rests on four pillars: patients,
people and communities, the environment and business conduct
Environment
Risk prevention
& management
Resource
management
Patients
Access
Research
Clinical trials
Dialogue
People and
communities
Diversity &
inclusion
Living wage
Health & safety
Community
involvement
Emergency aid
Business
conduct
Integrity &
Compliance
Marketing
practices
Third-party
management
Integrity Line
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13
Access-to-medicine programs
in 2009 we supported 79.5 million patients
1
Novartis Institute for Tropical Diseases;
2
Novartis Vaccines Institute for Global Health;
3
Based on approximate market value
2009
Programs and
research valued
at USD 1.5 bn
3
Contributed 3%
of net sales
Coartem

subsidized
84 million treatments shipped cumulatively
delivered 300 million treatments, helping to save
about 750,000 lives
Leprosy medication free of charge
>4.5 million patients cured since 2000
Tuberculosis medicine donations
500,000 treatments committed, 50% delivered
Glivec

patient assistance
Free to >37,000 patients in about 80 countries
NITD
1
in Singapore
Focus on tuberculosis, dengue fever and malaria
NVGH
2
in Siena, Italy
Vaccines research institute for neglected diseases
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We make a difference for patients
'My disease affects so few
people, no one cared to
research a treatment.
until now."
Siobhan Walsh
rare disease patient
'The more I take care of
myself, the less others
will have to."
Odell Hall
avid exerciser
'If there was a vaccine for
meningitis B, my daughter
would still be alive today."
Robert Leland
father
'When you take as many
medicines as I need,
cost is an issue."
Luz Martinez
senior citizen
Novartis is deploying our understanding of
biological mechanisms toward a range of
major diseases while also offering hope to
patients with rare illnesses who could
benefit from these discoveries.
Novartis empowers patients and consumers
by providing a wide range of readily-available
healthcare products.
Novartis is a leader in providing vaccines that
protect against life-threatening viral and
bacterial diseases, with a priority research
focus on developing new vaccines to prevent
meningococcal infections.
Novartis offers patients high-quality,
affordable generic medicines to reduce
financial burden.
| SEO Presentation | 4 January 2011