Novartis Financial Results Q4 2023

Ad hoc announcement pursuant to Art. 53 LR

FINANCIAL RESULTS | RÉSULTATS FINANCIERS | FINANZERGEBNISSE

Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 49 of the Condensed Financial Report. Unless otherwise noted, all

growth rates in this Release refer to same period in prior year.

. 2

As defined on page 37 of the Condensed Financial Report, Continuing operations include the retained business activities of Novartis, comprising the

innovative medicines business and the continuing Corporate activities and Discontinued operations include operational results from the Sandoz business.

Please see detailed guidance assumptions on page 7

Novartis International AG

Novartis Global Communications

CH-4002 Basel

Switzerland

https://www.novartis.com

Novartis delivers strong full year performance, 10% net sales and 18%

core operating income growth (cc

), with margin expansion. Continuing

innovation momentum with multiple positive Ph3 readouts

Full year (continuing operations

)

•

Net sales grew +10% (cc, +8% USD) with core operating income growing +18% (cc, +11% USD)

•

Sales growth was mainly driven by continued strong performance from Entresto (+31% cc), Kesimpta

(+99% cc), Kisqali (+75% cc), Pluvicto (+261% cc) and Scemblix (+179% cc)

•

Operating income increased +39% (cc, +23% USD). Net income increased +62% (cc, +42% USD).

Free cash flow from continuing operations was USD 13.2 billion (+9% USD)

•

EPS grew +70% (cc, +49% USD) to USD 4.13. Core EPS was USD 6.47 growing +25% (cc, +18% USD)

Fourth quarter (continuing operations)

•

Net sales grew +10% (cc, +8% USD) with core operating income growing +13% (cc, +5% USD),

•

Sales growth was mainly driven by continued strong performance from Entresto (+26% cc), Kisqali

(+76% cc), Kesimpta (+73% cc), Cosentyx (+21% cc) and Pluvicto (+53% cc)

•

Q4 selected innovation milestones:

o Fabhalta FDA approval for treatment of adults with PNH (both previously treated and treatment-naïve)

o Cosentyx FDA approval for the treatment of moderate to severe HS in adults

o Cosentyx FDA approval for intravenous formulation in three indications (PsA, AS, nr-axSpA)

o Iptacopan Ph3 APPLAUSE-IgAN met its primary endpoint in IgAN patients

o Atrasentan Ph3 ALIGN study met its primary endpoint in IgAN patients

o Iptacopan Ph3 APPEAR-C3G met its primary endpoint in C3G patients

o Scemblix Ph3 ASC4FIRST study met its primary endpoints in 1L Ph+ CML-CP patients (January)

Dividend, 2024 guidance; updated mid-term guidance

 Dividend of CHF 3.30 per share, an increase of 3.1%, proposed for 2023

 2024 guidance

– Net sales expected to grow mid single digit and core operating income expected to

grow high single digit

 Updated mid-term guidance – Net sales expected to grow 5% cc CAGR 2023-2028 with core

operating income margin expanding to ~40%+ by 2027

Basel, January 31, 2024 - commenting on 2023 results, Vas Narasimhan, CEO of Novartis, said:

“Novartis completed its strategic transformation into a pure-play innovative medicines company and

continued its relentless pursuit of sustainable shareholder value creation. Our robust operational

performance continues, with strong double-digit top and bottom-line growth, for the quarter and full year.

We delivered ten positive Ph3 readouts on assets with significant sales potential, over the past year. The

very strong performance of our key growth drivers and pipeline underscores the confidence in our growth

(5% cc CAGR 2023-2028) and margin (40%+ by 2027) mid-term guidance.”

Key figures

Continuing operations

Q4 2023 Q4 2022 % change FY 2023 FY 2022 % change

USD m USD m USD cc USD m USD m USD cc

Net sales 11 423 10 576 8 10 45 440 42 206 8 10

Operating income 2 582 1 755 47 68 9 769 7 946 23 39

Net income 2 638 1 315 101 130 8 572 6 049 42 62

EPS (USD) 1.29 0.62 108 140 4.13 2.77 49 70

Free cash flow 2 141 3 462 -38 13 160 12 123 9

Core operating income 3 821 3 645 5 13 16 372 14 794 11 18

Core net income 3 126 2 963 6 11 13 446 11 946 13 19

Core EPS (USD) 1.53 1.39 10 16 6.47 5.48 18 25

IFRS

Accounting Standards requires for our Argentina subsidiary, as it operates in a hyperinflation economy, to translate for consolidation purposes their full year income statement to our USD presentation

currency using the ARS closing rate, and not using the average exchange rate for the period. This results in the 9-months and the Q4 devaluation impact being recognized in Q4.

Strategy Update

Our focus

During 2023, Novartis completed our transformation into a “pure-play” innovative medicines business.

We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic,

immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each

of these areas, that address high disease burden and have substantial growth potential. In addition to

two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene

& cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new

R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority

geographies - the US, China, Germany and Japan.

Our priorities

1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch

excellence, with a rich pipeline across our core therapeutic areas.

2. Deliver returns: Continuing to embed operational excellence and deliver improved financials.

Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with

substantial cash generation and a strong capital structure supporting continued flexibility.

3. Strengthening foundations: Unleashing the power of our people, scaling data science and

technology and continuing to build trust with society.

Financials

Following the September 15, 2023, shareholders’ approval of the spin-off of the Sandoz business the

Company reported its consolidated financial statements for the current and prior years as “continuing

operations” and “discontinued operations.”

Continuing operations include the retained business activities of Novartis, comprising the innovative

medicines business and the continuing corporate activities. Discontinued operations include the Sandoz

Division and selected portions of corporate activities attributable to Sandoz’s business, as well as certain

expenses related to the spin-off.

Following the spin-off of the Sandoz business, Novartis operates as a single global operating segment

focused innovative medicines company.

The commentary below focuses on continuing operations. We also provide information on discontinued

operations, which mainly includes Sandoz and allocated corporate activities.

Continuing operations

Fourth quarter

Net sales were USD 11.4 billion (+8%, +10% cc) in the fourth quarter driven by volume growth of 13

percentage points. Generic competition had a negative impact of 3 percentage points and pricing had

no impact.

Operating income was USD 2.6 billion (+47%, +68% cc), mainly driven by higher net sales and lower

restructuring charges, partly offset by higher SG&A and R&D investments.

Net income was USD 2.6 billion (+101%, +130% cc), mainly driven by higher operating income and non-

recurring favorable tax impacts. EPS was USD 1.29 (+108%, +140% cc), benefiting from lower weighted

average number of shares outstanding.

Core operating income was USD 3.8 billion (+5%, +13% cc), mainly driven by higher net sales, partly offset

by higher SG&A and R&D investments. Core operating income growth in USD was impacted by negative

2 percentage points from the effect of mid-December currency devaluation in Argentina

. Core operating

income margin was 33.5% of net sales, decreasing 1.0 percentage point (+1.0 percentage point cc).

Core net income was USD 3.1 billion (+6%, +11% cc), mainly due to higher core operating income. Core

EPS was USD 1.53 (+10%, +16% cc), benefiting from lower weighted average number of shares

outstanding.

Free cash flow from continuing operations amounted to USD 2.1 billion (-38% USD), compared with

USD 3.5 billion in the prior year quarter driven by lower net cash flows from operating activities.

Full year

Net sales were USD 45.4 billion (+8%, +10% cc) in the full year, driven by volume growth of 16

percentage points, partly offset by price erosion of 2 percentage points and the negative impact from

generic competition of 4 percentage points.

Operating income was USD 9.8 billion (+23%, +39% cc), mainly driven by higher net sales, lower

restructuring charges, and income from legal matters, partly offset by higher impairments and higher

SG&A and R&D investments.

Net income was USD 8.6 billion (+42%, +62% cc), mainly driven by higher operating income and non-

recurring favorable tax impacts. EPS was USD 4.13 (+49%, +70% cc).

Core operating income was USD 16.4 billion (11%, +18% cc), mainly driven by higher net sales, partly

offset by higher SG&A and R&D investments. Core operating income margin was 36.0% of net sales,

increasing 0.9 percentage points (+2.4 percentage points cc).

Core net income was USD 13.4 billion (+13%, +19% cc), mainly due to higher core operating income.

Core EPS was USD 6.47 (+18%, +25% cc), benefiting from lower weighted average number of shares

outstanding.

Free cash flow from continuing operations amounted to USD 13.2 billion (+9% USD), compared with

USD 12.1 billion in 2022 driven by higher net cash flows from operating activities.

Discontinued operations

Discontinued operations include the Sandoz generic pharmaceuticals and biosimilars division, certain

corporate activities attributable to Sandoz prior to the spin-off up to the distribution date of October 3,

2023, and certain other expenses related to the spin-off. Included in 2023 is also the IFRS Accounting

Standards non-cash, non-taxable net gain on the distribution of Sandoz Group AG to Novartis AG

shareholders of USD 5.9 billion, representing mainly the excess amount of the IFRS Accounting

Standards distribution liability, which is the estimated fair value of the Sandoz business distributed to

Novartis AG shareholders, over the then carrying value of Sandoz business net assets. There were no

operating results for the fourth quarter 2023 following the distribution date. The prior year includes the

results for the full period.

Fourth quarter

Net income from discontinued operations amounted to USD 5.8 billion, driven by the IFRS Accounting

Standards non-cash, non-taxable, net gain on distribution of Sandoz Group AG to Novartis AG

shareholders of USD 5.9 billion, compared to USD 151 million in prior year.

Full year

Discontinued operations net sales in 2023 were USD 7.4 billion, compared to USD 9.4 billion in 2022

and operating income amounted to USD 265 million compared to USD 1.3 billion in 2022.

Net income from discontinued operations in 2023 amounted to USD 6.3 billion, compared to USD 906

million in 2022, driven by the IFRS Accounting Standards non-cash, non-taxable, net gain on distribution

of Sandoz Group AG to Novartis AG shareholders, which amounted to USD 5.9 billion.

Total Company

Fourth quarter

Total Company net income was USD 8.5 billion in 2023, compared to USD 1.5 billion in 2022 and basic

EPS was USD 4.14 compared to USD 0.69 in prior year, driven by the IFRS Accounting Standards non-

cash, non-taxable, net gain on distribution of Sandoz Group AG to Novartis AG shareholders of USD 5.9

billion. Net cash flows from operating activities for total Company amounted to USD 2.5 billion and free

cash flow amounted to USD 2.1 billion.

Full year

Total Company, net income amounted to USD 14.9 billion in 2023, compared to USD 7.0 billion in 2022,

and basic earnings per share was USD 7.15 compared to USD 3.19 in prior year, driven by the IFRS

Accounting Standards non-cash, non-taxable, net gain on distribution of Sandoz Group AG to Novartis

AG shareholders of USD 5.9 billion. Net cash flows from operating activities for the total company

amounted to USD 14.5 billion, and free cash flow amounted to USD 13.2 billion.

Q4 key growth drivers

Underpinning our financial results in the quarter is a continued focus on key growth drivers (ranked in

order of contribution to Q4 growth) including:

Entresto

(USD 1 635 million, +26% cc) sustained robust demand-led growth, with increased

patient share across all geographies

Kisqali (USD 610 million, +76% cc) sales grew strongly across all regions, based on increasing

recognition of consistently reported overall survival in HR+/HER2- advanced breast cancer

Kesimpta (USD 641 million, +73% cc) sales grew across all regions driven by increased demand

and strong access

Cosentyx (USD 1 303 million, +21% cc) US sales grew (+17%) and ex-US sales (+26% cc),

benefitting from lower prior year base (including revenue deduction adjustments in the US)

Pluvicto

(USD 273 million, +53% cc) continued sales growth in the US. Supply now

unconstrained, focusing on initiating new patients

Ilaris (USD 376 million, +29% cc) sales grew across all regions

Leqvio (USD 123 million, +190% cc) launch is ongoing, with focus on patient on-boarding,

removing access hurdles and enhancing medical education

Scemblix (USD 125 million, +143% cc) continued its strong launch uptake demonstrating the

high unmet need in CML

Jakavi (USD 444 million, +14% cc) sales grew in emerging growth markets, Europe and

Japan, driven by strong demand in both myelofibrosis and polycythemia vera indications

Xolair (USD 378 million, +16% cc) sales grew across all regions

Tafinlar + Mekinist

(USD 486 million, +7% cc) sales grew mainly in the US and emerging growth

markets, partly offset by decline in Europe

Promacta/Revolade

(USD 563 million, +4% cc) sales grew mainly in the US driven by increased use in

chronic ITP and severe aplastic anemia

Piqray (USD 131 million, +18% cc) sales grew mainly in the US

Lutathera (USD 147 million, +13% cc) sales grew across all regions due to increased demand

Emerging Growth

Markets*

Grew +18% (cc) overall. China grew (+38% cc) to USD 0.8 billion, due to lower prior

year base. For the full year, China grew +17% (cc)

*All markets except the US, Canada, Western Europe, Japan, Australia, and New Zealand

Net sales of the top 20 brands in 2023

Q4 2023 % change FY 2023 % change

USD m USD cc USD m USD cc

Entresto

1 635 27 26 6 035 30 31

Cosentyx

1 303 21 21 4 980 4 5

Promacta/Revolade

563 4 4 2 269 9 10

Kesimpta

641 74 73 2 171 99 99

Kisqali

610 71 76 2 080 69 75

Tafinlar + Mekinist

486 5 7 1 922 9 11

Tasigna

446 -6 - 6 1 848 -4 -3

Jakavi

444 14 14 1 720 10 12

Lucentis

301 -24 - 25 1 475 -21 -20

Xolair

378 17 16 1 463 7 9

Ilaris

376 25 29 1 355 20 22

Sandostatin

316 4 5 1 314 6 8

Zolgensma

286 -7 - 4 1 214 -11 -9

Pluvicto

273 53 53 980 262 261

Gilenya

154 -55 - 55 925 -54 -54

Exforge Group

156 -2 - 1 713 -4 -1

Galvus Group

153 -27 - 17 692 -19 -11

Diovan Group

147 4 6 613 -6 -1

Lutathera

147 15 13 605 28 28

Gleevec/Glivec

128 -27 - 25 561 -25 -22

Top 20 brands total 8 943 13 14 34 935 10 12

R&D update - key developments from the fourth quarter

New approvals

Fabhalta

(iptacopan)

Approved in the US as the first oral monotherapy for the treatment of adults (both

previously treated and treatment-naïve patients) with paroxysmal nocturnal

hemoglobinuria (PNH)

Cosentyx

Approved in the US as the first new biologic therapy for the treatment of moderate to

severe hidradenitis suppurativa (HS) in adults in nearly a decade

Approved in the US as an intravenous formulation in three indications: psoriatic

arthritis, ankylosing spondylitis, and non-radiographic axial SpA

Results from ongoing trials and other highlights

Scemblix

(asciminib)

Ph3 ASC4FIRST study met both primary endpoints (major molecular response rate

vs. imatinib or investigator-selected tyrosine kinase inhibitors) with clinically

meaningful and statistically significant results in newly diagnosed patients with

Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase (Ph+

CML-CP). Additionally, Scemblix showed a favorable safety and tolerability profile.

Data will be presented at an upcoming medical conference and submitted to

regulatory authorities in 2024

Ph3 ASCEMBL study, median follow-up of almost 4 years, in patients with Ph+ CML-

CP continue to support the efficacy, safety and tolerability profile compared with

bosutinib in 3L+ setting. Data presented at ASH 2023

Fabhalta

(iptacopan)

Ph3 APPLAUSE-IgAN study interim analysis demonstrated clinically meaningful and

highly statistically significant proteinuria reduction in patients with IgA nephropathy.

The trial met its pre-specified interim analysis (9 months) primary endpoint,

demonstrating superiority vs. placebo in proteinuria reduction, with safety consistent

with previously reported data. Novartis plans to review interim data with regulatory

authorities for accelerated approval; study continues with final readout at 24 months

Ph3 APPEAR-C3G study met its primary endpoint, demonstrating superiority of

iptacopan vs placebo in proteinuria reduction at six-month analysis and provided

clinically meaningful and statistically significant proteinuria reduction in patients with

C3G on top of background therapy. Iptacopan’s safety profile was consistent with

previously reported data. Data to be presented at an upcoming medical meeting.

Study continues with all patients receiving active therapy for six-months

Ph3 APPLY-PNH extension data showed sustained efficacy and long-term safety of

Fabhalta in adults with paroxysmal nocturnal hemoglobinuria (PNH). Data showed

sustained clinically meaningful hemoglobin-level increases to near-normal (≥12

g/dL), blood transfusion avoidance, and improved patient-reported fatigue in the

majority of patients. Comparable benefits were seen in those patients switching from

anti-C5 therapy to Fabhalta. Safety profile at 48 weeks was similar to 24 week data.

Data presented at ASH 2023

atrasentan

Ph3 ALIGN study met its primary endpoint, demonstrating superiority of atrasentan vs

placebo in proteinuria reduction at 36-week interim analysis with clinically meaningful

and highly statistically significant reduction in proteinuria in IgAN patients receiving

supportive care. Safety profile of atrasentan was consistent with previously reported

data. Data to be presented at an upcoming medical meeting. Study continues with

final readout expected in 2026

remibrutinib

Ph3 REMIX-1 and REMIX-2 trials showed clinically meaningful and statistically

significant reduction in weekly urticaria activity (UAS7), itch (ISS7) and hives (HSS7)

at Week 12 vs placebo in patients with CSU. Significant improvement in symptom

control was seen as early as Week 2 and sustained up to Week 12. Remibrutinib

was well-tolerated and demonstrated a favorable safety profile with rates of overall

adverse events comparable to placebo and balanced liver function tests across both

studies. Studies are ongoing with final (52-week) readout and regulatory

submissions in 2024. Data presented at AAAI 2023

Kisqali

(ribociclib)

Final protocol-specified iDFS analysis of Ph3 NATALEE trial (with a median follow-

up of 33.3 months and 78.3% of patients having completed ribociclib) reinforces

25% reduction in risk of recurrence across broad population of patients with

HR+/HER2- early breast cancer and continues to support regulatory submissions.

iDFS benefit remains consistent across key patient subgroups, with stability in

secondary endpoints including overall survival (OS). Among patients with stage II

and stage III tumors, ribociclib lowered risk of disease recurrence by 30% and

24.5%, respectively. Safety profile was in line with previously reported results. Data

presented at SABCS 2023. NATALEE data submitted to the FDA in December 2023

Early-stage

business

development in

core therapeutic

areas and

technologies

Cardiovascular-Renal-Metabolic:

 Chong Kun Dang (LMW, lead asset CKD-510 for diseases in which the enzyme

HDAC6 is thought to play a role, including some cardiovascular diseases)

 SanReno (LMW and mAb, securing worldwide rights for Atrasentan/Zigakibart)

 Argo Biopharma (xRNA, undisclosed targets)

Neuroscience:

 Voyager Therapeutics (Gene therapy, strategic collaboration and capsid license

agreement for potential Huntington’s Disease and spinal muscular atrophy

therapies)

Immunology:

 Calypso (Biotherapeutics, lead asset CALY-002 a promising anti-IL-15 mAB, to

be investigated in a range of autoimmune indications)

Oncology:

 Legend Biotech (Cell Therapy, targeting DLL3, a ligand highly expressed in

several cancers)

Isomorphic Labs – Leveraging AI including next generation AlphaFold model, to

discover novel small molecule therapeutics against undisclosed targets

Capital structure and net debt

Retaining a good balance between investment in the business, a strong capital structure and attractive

shareholder returns remains a priority.

In 2023, Novartis repurchased a total of 87.5 million shares for USD 8.4 billion on the SIX Swiss

Exchange second trading line. These repurchases included 52.8 million shares (USD 4.9 billion) under

the USD 15 billion share buyback (announced in December 2021 and completed in June 2023) and 23.0

million shares (USD 2.3 billion) under the new up-to USD 15 billion share buyback announced in July

2023 (which is continuing as planned, with up-to USD 12.7 billion remaining). In addition, 11.7 million

shares (USD 1.2 billion) were repurchased to mitigate dilution related to participation plans of associates.

Furthermore, 1.6 million shares (for an equity value of USD 0.1 billion) were repurchased from

associates. In the same period, 13.5 million shares (for an equity value of USD 1.1 billion) were delivered

as a result of options exercised and share deliveries related to participation plans of associates.

Consequently, the total number of shares outstanding decreased by 75.6 million versus December 31,

2022. These treasury share transactions resulted in an equity decrease of USD 7.4 billion and a net cash

outflow of USD 8.6 billion.

As of December 31, 2023, net debt increased to USD 10.2 billion compared to USD 7.2 billion at December

31, 2022. The increase was mainly due to the USD 7.3 billion annual dividend payment, net cash outflow

for treasury share transactions of USD 8.6 billion and net cash outflow for M&A / intangible assets

transactions of USD 3.3 billion. This increase in net debt was partially offset by USD 13.2 billion free cash

flow and a USD 3.0 billion reduction in the net debt position of Novartis related to the Sandoz spin-off.

As of Q4 2023, the long-term credit rating for the Company is A1 with Moody’s Investors Service and

AA- with S&P Global Ratings.

2024 outlook

Barring unforeseen events; growth vs prior year in cc

Net sales

Expected to grow mid single digit

Core operating income Expected to grow high single digit

Key assumptions:

 Our guidance assumes that no Entresto generics launch in the US in 2024

Foreign exchange impact

If late-January exchange rates prevail for the remainder of 2024, the foreign exchange impact for the year

would be negative 1 percentage point on net sales and negative 3 percentage points on core operating

income. The estimated impact of exchange rates on our results is provided monthly on our website.

Annual General Meeting

Dividend proposal

The Novartis Board of Directors proposes a dividend payment of CHF 3.30 per share for 2023, up 3.1%

from CHF 3.20 per share in the prior year, representing the 27th consecutive dividend increase since

the creation of Novartis in December 1996. Shareholders will vote on this proposal at the Annual General

Meeting on March 5, 2024.

Reduction of share Capital

The Novartis Board of Directors proposes to cancel 87 547 255 shares (repurchased under the

authorization of March 4, 2022) and to reduce the share capital accordingly by CHF 42.9 million, from

CHF 1 115 964 098.48 to CHF 1 073 065 943.53.

Elections of the Board Chair and the members of the Board of Directors

The Board of Directors proposes the re-election of all current members of the Board of Directors

(including the Board Chair).

Key figures

Continuing operations

Q4 2023 Q4 2022 % change

FY 2023 FY 2022 % change

USD m USD m USD cc

Net sales 11 423 10 576 8 10

Net sales 45 440 42 206 8 10

Operating income 2 582 1 755 47 68

Operating income 9 769 7 946 23 39

As a % of sales 22.6 16.6

As a % of sales 21.5 18.8

Net income 2 638 1 315 101 130

Net income 8 572 6 049 42 62

EPS (USD) 1.29 0.62 108 140

EPS (USD) 4.13 2.77 49 70

Cash flows from

operating activities 2 547 3 768 -32

Cash flows from

operating activities 14 220 13 039 9

Non-IFRS measures

Free cash flow 2 141 3 462 -38

Free cash flow 13 160 12 123 9

Core operating income 3 821 3 645 5 13

Core operating income 16 372 14 794 11 18

As a % of sales 33.5 34.5

As a % of sales 36.0 35.1

Core net income 3 126 2 963 6 11

Core net income 13 446 11 946 13 19

Core EPS (USD) 1.53 1.39 10 16

Core EPS (USD) 6.47 5.48 18 25

Discontinued operations

Q4 2023 Q4 2022 % change

FY 2023 FY 2022 % change

USD m USD m USD cc

Net sales

2 374 nm nm

Net sales 7 428 9 372 nm nm

Operating income

194 nm nm

Operating income 265 1 251 nm nm

As a % of sales

8.2

As a % of sales 3.6 13.3

Net income 5 842 151 nm nm

Net income 6 282 906 nm nm

Non-IFRS measures

Core operating income

385 nm nm

Core operating income 1 185 1 871 nm nm

s a % of sales

16.

s a % of sales 16.0 20.0

Total Company Q4 2023 Q4 2022 % change

FY 2023 FY 2022 % change

USD m USD m USD cc

Net income 8 480 1 466 nm nm

Net income 14 854 6 955 nm nm

EPS (USD) 4.14 0.69 nm nm

EPS (USD) 7.15 3.19 nm nm

Cash flows from

operating activities 2 547 4 111 nm nm

Cash flows from

operating activities 14 458 14 236 nm nm

Non-IFRS measures

Free cash flow 2 141 3 713 nm nm

Free cash flow 13 179 13 038 nm nm

Core net income 3 127 3 251 nm nm

Core net income 14 336 13 352 nm nm

Core EPS (USD) 1.53 1.52 nm nm

Core EPS (USD) 6.90 6.12 nm nm

nm= not meaningful

Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 49 of the Condensed

Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year.

As defined on page 37 of the Condensed Financial Report, Continuing operations include the retained business activities of Novartis, comprising the innovative medicines

business and the continuing Corporate activities and Discontinued operations include operational results from the Sandoz business.

Detailed financial results accompanying this press release are included in the Condensed Financial Report at the link below:

https://ml-eu.globenewswire.com/resource/download/a507329c-1dd6-43c6-8a9b-9d0b86d9bf20/

Disclaimer

This press release contains forward-looking statements within the meaning of the United States Private

Securities Litigation Reform Act of 1995, that can generally be identified by words such as “may,”

“continue,” “ongoing,” “grow,” “launch,” “expect,” “deliver,” “transformation,” “focus,” “address,”

“accelerate,” “remain,” “scaling,” “guidance,” “outlook,” “long-term,” “driven,” “priority,” “potential,” “can,”

“will,” “propose,” or similar expressions, or by express or implied discussions regarding potential new

products, potential new indications for existing products, potential product launches, or regarding potential

future revenues from any such products; or regarding results of ongoing clinical trials; or regarding ongoing

or future share repurchases; or regarding potential future, pending or announced transactions; regarding

potential future sales or earnings; or by discussions of strategy, plans, expectations or intentions, including

discussions regarding our continued investment into new R&D capabilities and manufacturing; or regarding

our capital structure; or regarding the consequences of the spin-off of Sandoz and our transformation into

a “pure-play” innovative medicines company. 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. You should not place undue reliance on these statements. In particular, our

expectations could be affected by, among other things: uncertainties regarding the success of key

products, commercial priorities and strategy; uncertainties in the research and development of new

products, including clinical trial results and additional analysis of existing clinical data; uncertainties

regarding the use of new and disruptive technologies, including artificial intelligence; global trends toward

healthcare cost containment, including ongoing government, payer and general public pricing and

reimbursement pressures and requirements for increased pricing transparency; uncertainties regarding our

ability to realize the strategic benefits, operational efficiencies or opportunities expected from our external

business opportunities; our ability to realize the intended benefits of our separation of Sandoz into a new

publicly traded standalone company; our ability to obtain or maintain proprietary intellectual property

protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and

exclusivity on key products; uncertainties in the development or adoption of potentially transformational

digital technologies and business models; uncertainties surrounding the implementation of our new IT

projects and systems; uncertainties regarding potential significant breaches of information security or

disruptions of our information technology systems; uncertainties regarding actual or potential legal

proceedings, including regulatory actions or delays or government regulation related to the products and

pipeline products described in this press release; safety, quality, data integrity, or manufacturing issues;

our performance on and ability to comply with environmental, social and governance measures and

requirements; major political, macroeconomic and business developments, including impact of the war in

certain parts of the world; uncertainties regarding future global exchange rates; uncertainties regarding

future demand for our products; 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 press

release 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.

All product names appearing in italics are trademarks owned by or licensed to Novartis.

About Novartis

Novartis is an innovative medicines company. Every day, we work to reimagine medicine to improve and

extend people’s lives so that patients, healthcare professionals and societies are empowered in the face

of serious disease. Our medicines reach more than 250 million people worldwide.

Reimagine medicine with us: Visit us at https://www.novartis.com and connect with us on LinkedIn,

Facebook, X/Twitter and Instagram.

Novartis will conduct a conference call with investors to discuss this news release today at 14:00 Central

European time and 8:00 Eastern Time. A simultaneous webcast of the call for investors and other

interested parties may be accessed by visiting the Novartis website. A replay will be available after the

live webcast by visiting https://www.novartis.com/investors/event-calendar.

Detailed financial results accompanying this press release are included in the condensed financial report

at the link below. Additional information is provided on our business and pipeline of selected compounds

in late stage development. A copy of today's earnings call presentation can be found at

https://www.novartis.com/investors/event-calendar.

Important dates

March 5, 2024 Annual General Meeting

April 23, 2024 First quarter 2024 results

May 15-16, 2024 Meet Novartis Management 2024 (Cambridge, MA, USA)

July 18, 2024 Second quarter & Half year 2024 results

October 29, 2024 Third quarter & Nine months 2024 results