Systane Global education training centre

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1. Dry Eye / Systane Complete Launch Review March 2018 Rosario Tam – Global Director – Dry Eye

2. EMEA Business Meetings Context 2017-2018 Global/Region/Local business reviews and Systane Complete launch readiness reviews

3. The road show revealed key strategic needs and country clusters with varying opportunities Business Use Only 3 Key Needs & CPO assessment summary Capitalize on strong position Elevate to next level Re-launch required Leading market position, double-digit market MS. Mid-markets, growing fast. OTC focused and experienced. OTC defense via innovation. Coverage and DTC key. Mid-market position (exc. IT #1), single digit MS. Large markets, growing steadily. Strong investment required to defend HCP and to conquer OTC segment (coverage, pharmacy promotion, etc.). Low market position, low single digit MS. Large markets, growing slowly. Turn-around required, yet, limited CPO focus & skills (UK). Strengthen p roduct & price p ositioning Invest in OTC & win in pharmacies Strengthen & simplify unique selling proposition, align price. Accelerate new launches (MDPF, Systane Complete). Increase sampling. Address new OTC competition. Partner with CSO or Sandoz to increase pharmacy distribution. Improve in-store promotion & pharmacy margin mgmt. Invest in OTC skills (trade, KAM ). Key needs Country clusters

4. Systane underrepresented in large dry eye markets Detailed Dry Eye Market & Systane financials

5. NOR, RUS, POL well positioned to win in OTC market, DE, ESP, IT require investment to conquer OTC segment, UK & FR require turn-around or divestment! CPO Specific CPO actions DE Develop disruptive growth plans across segments to achieve USD 100m blue sky ! HCP : Increase SoV with GO, start sampling with Specialists and GPs. Pharmacy : Invest in in-store promotion & educate on superior pharmacy margin. Consumer : Only start DTC once i.e. distribution minimum targets are met. IT Start to compete in growing OTC segment . Invest in KAM/Trade Marketing capabilities. Set up pharmacy promotion and margin mgmt strategy! Improve Systane differentiation at pharmacy level. ESP Defend and grow in OTC segment . Invest in pharmacy coverage expansion via CSO first. Refine price position (increase) vs. product position (med-premium, no MDPF). Master pharmacy promotion & margin management before DTC. UK Re-evaluate segment focus . Start with winning in HCP segment (core strength) by growing SoV & referral and winning pharmacy accounts before conquering optical chains (3% MV only). Invest into market data & insights. FR HCP: investment in SoV required, GP as potential targets, stronger sampling, Systane Complete study with superiority against Balance. Pharmacy : Role of pharmacy needs to be further investigated. Pharmacy mgmt. needs to be explored. Investigate potential of OTC brands. NOR Defend #1 position . Grow in pharmacies, launch in Retail, re-launch in optical channel. Use upcoming MDPF & Complete launches in 2018 to reinvigorate premium & superior product positioning! RUS Regain #1 position via HCP recommendation (increased FF promotion across lines), pharmacy promotion (broad vs. niche position). Grow market with disease awareness campaigns in combination with in-pharmacy promotion/incentives. Explore DTC. POL Set up profitable strategy to defend #1 market position . Reassess Marketing mix & ROI. Assign PM with trade and KAM experience. Business Use Only 5 Detailed key needs in RE

6. Systane Complete Launch Reviews March 2018 Rosario Tam – Global Director Dry Eye Introducing SYSTANE COMPLETE

7. Segmentation of key SYSTANE® brands For Patients with Evaporative Dry Eye Deficiency (MGD) For Patients with Aqueous/Mucin Dry Eye Deficiency For Patients with any type of Dry Eye deficiency or Mixed Dry Eye

8. Simple Choice AND Helps both major types of dry eye patients Our best Systane drop! PRODUCT ULTRA BALANCE COMPLETE REASON TO BELIEVE / DEFICIENCY Aquaeos Tear replacement Lipid layer restoration Replenishes ALL layers of the tear film FORMULA HP-GUAR Lipid Emulsion - Mineral Oil NANO Lipid Emulsion - Mineral Oil + HP-GUAR

9. Systane Complete – Brand Overview – (ORIGINAL) Key value drivers Systane Complete protects the three layers of the tear film Addresses both Aqueous and Lipid deficiencies (mixed patients) First formulation that combines HPGuar + Lipid into one Optimal relief and Replenish were the two key differentiators that would provide higher incremental share with lower cannibalization No launch in China and Brazil due to regulatory issues Strategic Imperatives S2: Build Awareness & Trial S3: Maximize Channel S1 : Drive Successful launch Strategic Objectives Implement new global campaign (global brand guidelines, key claims, packaging restage, digital tools and best practices sharing) Develop appropriate trainings & tools to the Pharmacist to improve recommendation and trial Optimize price (market access & promotions) to drive premium brand equity and trial Improved share of shelf and channel expansion / distribution gains In-store merchandising to help consumers easily navigate to Systane with communication of its unique attributes Educate on medical need and build differentiated clinical data post-launch Prioritize Field and A&P resources for launch Providing best in class channel management that delivers rapid distribution and base business opportunities

10. Systane Complete Market Launch Tracker

11. PORTUGAL “Are we ready?” Portuguese team: Ana Alberto, Ana Cunha, Ricardo Rodrigues; José Góis Franchise Head : Catarina Santos

12. Key Messages - Portugal Very well prepared launch EEP – from Jan through April when will get feedback from doctors 2H 2017 – Changed strategy: Rx – Focus on Systane Complete; engage doctors Phx – Focus on Ultra, Ultra Plus, Gel, Balance 1H 2018 – Created buzz: Introduced Systane Complete kit customized to doctors Letters sent to pharmacies and wholesalers to make them aware of Systane Complete Motivated field force Insight: Systane Complete global guideline fits perfectly in this market Doctors believe on Systane Complete as simple choice and covers all layers of tear Doctors do not see all tears being the same. Pharmacists respect doctors and follow their prescriptions Market review: HA segment is not as important as in other markets Doctors do not like Balance

13. Executive Summary - Portugal Overview: Launch readiness Preparing the Launch : Ad . Board done in Nov’17 reveals the willingness to prescribe Sys Complete but to switch from Sys Balance; Field Force in Jan asked questions in market (General ophthas reveal difficulties on diferential Dxs of Dry Eye and say that would be good to have an artificial tear to use) Launch : Sys Complete launched in 19 th Feb’18: product available in wholesalers and pharmacies; Launch meetings in early April; Launch materials on the field Strategy : address Sys Complete as unique, innovative and a comfortable tear; address it as a specific tear for physicians; promote in all physicians (P1 in OS); address Dry Eye to GPs and pharmaceuticals through OS; address the topic “Tears in Glaucoma” in Glaucoma clinical sessions to increase SoV Opps & Risks Market and competitive environment Portuguese mkt splits in brands of Pharmacies ( recommended by pharmaceuticals and not by ophthas ) and Specs ( recommended by physicians ) Open items & next steps Define MoU w/ Alcon - ongoing ; Samples supply issues of Sys Complete; Define success targets: what do we want from Sys Complete? Opps : People : growing franchise in Ophthalmology (includes large team: medical affairs, mktg & sales force ); strong relationship and legacy from Alcon w/ physicians. Portfolio : Systane brand is MS leader and recognized by physicians as a specialist brand; Sys family for all types of Dry Eye; Reliable brand due to prescriptions (pharmaceuticals insights); Launch Sys Complete w/ innovative characteristics. Channel: Pharmacy channel with high potential to explore the brand leveraging Sys Complete as well; Sandoz team with motivation and team to promote Systane . Risks : People : Defocus due to glaucoma portfolio priority (20% vs 80%); long portfolio to promote; risk of no-go w/Sandoz SLA; risk of lack of samples until may Oph . brands Mkt Systane Thealoz Hyabak Optive MS ( Feb ) --------- 17.84% 14.86% 12.46% 5.53% Growth ( MAT’Feb ) +8.94% +15.55% +6.84% +4.40% -5.85% OS: Ocular Surface specialist GP: General Practicioner

14. Launch Status - Portugal Aligned and Prepared Organization 1. Achieve Organizational alignment 2. Build Capable and motivated team 3. Achieve Robust supply chain management Launch Metrics – success targets Sizing and Structuring of Field Resources Field Force/ MSL Training ( Phsysicians ) Portfolio Alignment Launch Plan Launch Team Marketing alignment – Alcon & NVS Supply Chain Management Opportunity and Forecast Internal Launch Communication Powerful & Pertinent Value Proposition 4. Achieve In-depth market understanding 5. Provide Powerful clinical evidence base 6. Create Compelling Value Proposition & Messages Market understanding Competitive Intelligence Patient Treatment Pathway Stakeholder Mapping Physician Segmentation & Targeting Target Profile & Positioning Value Proposition Key Message Development Effective & Efficient Stakeholder Engagement 7 . Maximize Advocacy, Adoption & Uptake 8 . Increase Understanding Medical Paradigm Pricing Strategy* Customer Partner Engagement Promotional Spend & Mix Campaign Development Digital Strategy Communication Congresses Symposia Scientific Publications Disease Awareness Programs Clinical development and lifecycle strategy Phase IV program – real data On track Special focus needed Major gap Pharmacy team recruitment & training

15. Systane Complete Launch Plan - Portugal Key milestone SYSTANE COMPLETE: Launch kick off preparation LAUNCH SYSTANE COMPLETE Launch maximization Commercial Stakeholder mapping Segmentation and Positioning Key claims and messages of Systane Complete Brand plan definition ( tactics ) Invitation for Launch meeting Sales training (12nd Jan) Launch meetings: 5th, 10th, 11st of April SYSTANE COMPLETE toolkit: “A ll - in-one ” launch material ( personalized launch box) CIRP ( Dry Eye Wetlab training camp on Dxs & Txs ) S. João Hospital Congress Systane Complete launch tracking New materials : maximizing benefits CHUC ( national event ) Training Camp in Dry Eye (medical- mktg ) New materials : maximizing benefits Training Camp in Dry Eye (medical- mktg ) Medical Clinical cases ( patient profiles ) Publication plan Meet The Expert: DEWS II ( diagnostic and monitoring of Dry Eye pts ) Training Dry Eye Camp (1 week training about Dry Eye – practice including surgery ) Consensus patient management: link pharmacy & physicians ( how to treat ; Txs algorithm Boost diagnosis : translation / validation of relevant questionnaire in Dry Eye 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

16. Executive Summary SYSTANE COMPLETE launch What are gaps / challenges ? 1 What is the plan to address them? 2 How can global support? 3 Define very clear positioning of Systane Complete vs competitors (unique w/ nano -technology) Monthly performance meetings with field force of Glaucoma and Systane Complete Educate pharmacists on Dry Eye and how to recommend Systane (differentiate well the sub-brands in order to not compromise the efficacy of each sub-brand) through Pharmacy groups (80% of pharmacy channel) Use clinical sessions of Glaucoma for GPs to address Dry Eye and the challenges / consequences of the syndrome Consolidate internal structural changes (Alcon & NVS) Higher differentiation from competitors needed in messages: how to translate scientific medical evidence in simple and competitive claims Create innovative/digital tools to get to patients Clinical data demonstrating Complete efficacy Develop clinical evidence vs competitors Minimize Systane`s cannibalization. Maintain focus on capturing MS from competitors Avoid defocus on promotional messages of Systane vs Glaucoma: stay tuned Define along time strong scientific messages to leverage in all visits Define simple claims with differentiation to meet customers needs (complex Systane’s portfolio) Dry Eye awareness among GPs Dry Eye awareness and brand awareness among pharmacy channel

17. ITALY

18. Executive summary: Strategy for Systane Complete launch Business Use Only 18 Systane portfolio s trategy Key actions Systane Complete is THE choice of Optimal Relief for patients with both lipid and aqueous deficiency, t hanks to HP guar and lipitech in a new formulation Systane Complete Launch is the lever to further strenghten Systane family Reinforcing RX strategy focused on Dry Eye proper diagnosis and treatment Boosting the Systane Family performance exploiting OTC channel coupling commercial offers and training Mitigating cannibalization maintaining Hydration on Dry Eye Aqueous-mucin deficiency pushing HA benefits, fast and long lasting release protection, advanced lubrication and extend restoration. Organizational readiness : FF : confirm FTEs, accountability and SoV Medical : + 1MSL to be allocated Marketing: + 1 Full dedicated OTC manager Promotion to ECPs : 2 lines promote Systane Complete Promotion to pharmacist : positioning/commercial strategy under evaluation, Focus on education on Dry Eye in partnership with KOLs Leverage on current partnership with Scientific Society (SOI ) Systane Complete Positioning Dry Eye Market & environment Dry Eye Market: $104m , +5,3,% vs PY (YTD Jul ‘17) More than 200 different artificial tears (64% consumer products) Dry Eye Market is driven by ECPs recommendation P atient unmet needs remain to receive proper diagnosis, effective treatment and long lasting relief benefits Key issue: Maintain differentiation offering an advanced and customized treatment options

19. Pricing vs. Competition Confidential for Internal Business Use ONLY Company Product Pack Description Public Price/Bottle ALLERGAN Optive Plus 30 units Optive Plus bottle 10ml UDPF Preserved 22,90 € 21,90 € BAUSCH & LOMB Artelac complete bottle 10 Artelac complete 10 units Artelac complete 30 units MDPF UDPF UDPF 23,00 € 12,90 € 23.90 € LABORATOIRES THEA Thealoz Duo MDPF 20.00 € SANTEN Cationorm Cationorm MDPF UDPF 19,80 € 20,81 € Key assumptions: Total not reimbursed market Systane Complete: +20% premium price vs Ultra Price aligned to competitive products , at the top of the range for artificial tears

20. Key Messages - ITALY Agreement between Novartis and Alcon for Novartis sales force to continue to lead Systane Complete launch throughout 2018 in order to avoid disruption Sales force motivated First 6 months of launch focused on Systane Complete Q4 2017 – EEP March 2018 – Launch Next steps: Test positioning in market within Systane family of products to build on portfolio

21. SPAIN

22. Market analysis *IMS sell-out values $ 01/18 HA key growth driver DRY EYE MARKET 168,9M$ +6% Only 2% of the products are targeted to lipid deficiency . Monodosis is 50% of thr market HA is a trend in the Spanish market . Tears with HA TOP 15 SKU *IMS sell-out values $ 01/18 HA market is driving the growth. More prominent at top 15 SKUs 11 out of 15 TOP SKU’s have HA in their composition and only these 9 SKU`s demonstrate growth Systane Ultra Plus HA has high growth (+ 41,3%) SKU MAT ‘18 M$ Growth % MS Market 168,889 6 100 VISCOFRESH 19,170 -9 9,1 HYABAK 14,178 8 7,4 THEALOZ DUO 8,455 25 4,4 AQUORAL 6,970 -12 3,6 LUBRISTIL 5,445 6 2,8 OPTAVA FUSION 5,276 -1 2,8 HYLO-GEL 5,107 54 2,7 SYSTANE ULTRA 4,860 -4 2,5 HYLO COMOD 4,373 25 2,3 HYLO DUAL 3,750 48 2 AQUORAL FORTE 2,849 850 1,5 RECUGEL 2,824 -9 1,5 SYSTANE ULTRA PLUS 2,805 41,3 1,5 OPTREX 2,359 -27 1,2 OPTIBEN 2,046 30 1,1 SYSTANE BALANCE 2,043 -5 1,1

23. SPAIN – Key Messages Systane adjusted forecast SP2017 $10.7MM to Alcon2018 $9.9MM due to transition disruption (per Alcon team) Market overview: Strong HA and PF segment in Spain Insights: Focus of recommendations is on HA products Ad board feedback summary: Doctors do not believe one drop fits all types of dry eye They are looking for products with HA Next steps: Lead medical scientific ad board with science data points Drive clarity of positioning Q4 2018 – Implement EEP March 2019 - Gain doctor engagement for Systane Complete at SECOI meeting March 2019 – Launch Systane Complete

24. SPAIN - Launch Readiness Status – Launch: March 2019 Aligned and Prepared Organization 1. Achieve Organizational alignment 2. Build Capable and motivated team 3. Achieve Robust supply chain management Launch Metrics - LRR Sizing and Structuring of Field Resources Field Force/ MSL Recruitment and Training Portfolio Alignment Launch Plan Launch Team Manufacturing Compensation Planning Supply Chain Management Packaging Opportunity and Forecast Internal Launch Communication Powerful & Pertinent Value Proposition 4. Achieve In-depth market understanding 5. Provide Powerful clinical evidence base 6. Create Compelling Value Proposition & Messages Market understanding Competitive Intelligence Patient Treatment Pathway Stakeholder Mapping Physician Segmentation & Targeting Target Profile & Positioning Value Proposition Key Message Development Effective & Efficient Stakeholder Engagement 7. Secure Regulatory Approval and access 8. Maximize Advocacy, Adoption & Uptake 9. Increase Understanding Medical Paradigm Pricing Strategy* Contingency and Planning Customer Partner Engagement Promotional Spend & Mix Campaign Development Digital Strategy Communication Congresses Symposia Scientific Publications Disease Awareness Programs Clinical development and lifecycle strategy Phase IV program Market authorisation On track Special focus needed Major gap

25. SPAIN - Executive Summary Overview: Launch readiness Repositioning of Systane as premium brand generates the optimal base for the launch of Systane Complete: Optimal FF focus on both targets: Ophthalmologists & Pharmacists Positioning & pricing aligned to the best partner at dry eye segment Key success factors: Product: Simple and clear positioning Physicians: Engagement of ECPs via Early Experience Program Pharmacists: ensure availability FF: Motivated and well-trained team Launch date March 2019, EEP Sep 2018 Market and competitive environment Market Dry eye market is large, yet underdeveloped ($ 165,5M) HA is driven the market (49% Msh €, +14% growth ) Sales concentrated in few brands Lack of differentiation between brands, customers tend to consider the segment as commodity Stakeholders Physicians: do not consider dry eye as a serious condition (do not differentiate aqueous vs lipid deficiency) Pharmacists: gaining decision power during recent years. Strong competition: high discounts , offers . Key challenges Team motivation Minimize the disruption in promotional messages Minimize Systane`s cannibalization (Ultra Plus +42,9%units). Maintain focus on capturing MS from competitors Consider optimal launch time to prepare the ground for Systane Complete (mixed deficiency) and maximize the HA “momentum” with Systane Ultra Plus. Define simple claims with differentiation to meet customers needs (complex Systane’s portfolio) Invest appropriately on medical education: Ophthalmologists do not differentiate between aqueous vs. MGD

26. Executive Summary - SPAIN What are gaps / challenges ? 1 What is the plan to address them? 2 How can global support? 3 Define very clear positioning for each SKU (look to take competitors Msh ). Focus on key SKUs at promotional level Maximize Ultra plus performance Consolidate internal structural changes Prepare the market for Systane Complete. Build a story for mix and lipid deficiency dry eye Educate physicians and develop pharmacists awareness Search for the advice of the ECPs in the Advisory Boards to position Complete correctly Higher differentiation from competitors needed in messages: how to translate scientific medical evidence in simple and competitive claims Resources for Spanish market research to provide essential knowledge ( ECPs needs, price analysis..) Create innovative training & promotional materials ( e.g. mass mailing campaign) Clinical data demonstrating Complete efficacy Develop clinical evidence vs competitors Consider transfer price & SPC Minimize Systane`s cannibalization (Ultra Plus +42,9%). Maintain focus on capturing Msh from competitors Avoid disruption on promotional messages Consider optimal launch time to prepare the ground for Systane Complete (mixed deficiency) and maximize the HA “momentum” with Systane Ultra Plus Define simple claims with differentiation to meet customers needs (complex Systane’s portfolio) Invest appropriately on medical education: Ophthalmologists do not differentiate between aqueous vs. MGD

27. Systane strategy Key advantages Mixed deficiency ( addresses both Aqueous & Lipid ) Protects the three layers of the tear film For physicians who do not differentiate dry eye origin . All -in- one drop for all types of dry eye . Aqueous deficiency Fast long lasting For physicians who “ love ” HA and prefer extra hydration for their patients Revolution / Innovation Proven Efficacy Keep positioning Systane ULTRA PLUS as the first choice in patients with aqueous deficiency and ocular surface damage (optimizing HA momentum) Continue developing dry eye market by delivering an innovative product ( Systane COMPLETE) to simplify dry eye management.

28. Launch Timeline Sep 2017 Des 2017 Mar & Jul 2018 Sep 2018 March 2019 SYSTANE COMPLETE LAUNCH - In store distribution - EEP implementation Optimal launch time to prepare the ground for Systane Complete (mixed deficiency ) Dec 2018

29. NORDICS