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Participants	Company overview	Pharmaceuticals	Oncology	Financial review	Conclusion	Appendix	References

Q2 2021 Results

Investor presentation

1 Investor Relations │ Q2 2021 Results

Participants	Company overview	Pharmaceuticals	Oncology	Financial review	Conclusion	Appendix	References

Disclaimer

This presentation 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 "potential," "expected," "will," "planned," "pipeline," "outlook," 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 our estimates of the impact of past and future COVID-19 related forward purchasing de-stocking on our performance; or regarding the impact of the COVID-19 pandemic on parts of our business including Oncology, generics, and certain geographies; or regarding potential future, pending or announced transactions; regarding potential future sales or earnings of the Group or any of its divisions; or by discussions of strategy, plans, expectations or intentions; or regarding the Group's liquidity or cash flow positions and its ability to meet its ongoing financial obligations and operational needs. 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: liquidity or cash flow disruptions affecting our ability to meet our ongoing financial obligations and to support our ongoing business activities; the impact of the COVID-19 pandemic on enrollment in, initiation and completion of our clinical trials in the future, and research and development timelines; the impact of a partial or complete failure of the return to normal global healthcare systems including prescription dynamics, particularly oncology, in the second half of 2021; 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 potential significant breaches of data security or data privacy, or disruptions of our information technology systems; regulatory actions or delays or government regulation generally, including potential regulatory actions or delays with respect to the development of the products described in this presentation; the potential that the strategic benefits, synergies or opportunities expected from the transactions described, may not be realized or may be more difficult or take longer to realize than expected; the uncertainties in the research and development of new healthcare products, including clinical trial results and additional analysis of existing clinical data; 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; safety, quality, data integrity, or manufacturing issues; uncertainties involved in the development or adoption of potentially transformational technologies and business models; uncertainties regarding actual or potential legal proceedings, investigations or disputes; our performance on environmental, social and governance measures; general political, economic and business conditions, including the effects of and efforts to mitigate pandemic diseases such as COVID-19; 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 presentation as of this date and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.

2 Investor Relations │ Q2 2021 Results

Participants	Company overview	Pharmaceuticals	Oncology	Financial review	Conclusion	Appendix	References

Participants

Vas Narasimhan	John Tsai
Chief Executive Officer	Head of Global Drug Development and CMO
Harry Kirsch	Richard Saynor
Chief Financial Officer	CEO, Sandoz
Marie-France Tschudin	Karen Hale
President, Novartis Pharmaceuticals	Chief Legal Officer
Susanne Schaffert	Samir Shah
President, Novartis Oncology	Global Head Investor Relations

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Participants	Company overview	Pharmaceuticals	Oncology	Financial review	Conclusion	Appendix	References

Vas Narasimhan

Chief Executive Officer

Company overview

4 Investor Relations │ Q2 2021 Results

Participants	Company overview	Pharmaceuticals	Oncology	Financial review	Conclusion	Appendix	References

Consistent long-term performance driving confidence for the future

Consistent strong performance
Sales	+6%
USD bn, % CAGR cc
22.3	22.9	23.6	25.4
Core OpInc	+13%
USD bn, % CAGR cc
6.2	6.9	7.8	8.3
Innovative Medicines		+280bps	+40bps
Core margin (%), growth cc bps	+320bps
	36.5	36.8
	34.4
31.8
H1 2018	H1 2019	H1 2020	H1 2021

Confident on growth outlook

External expectations based on analyst consensus, as presented at November 2020 Meet Novartis Management1 (USD bn)

+4% CAGR

60

47

2019 ACT Growth	Launches Other/Pipeline Sandoz Gx Brands	2025
	Drivers
Consensus	33.5%
	37.6%
IM margin

All growth % in cc. IM - Innovative Medicines division. Constant currencies (cc), core results are non-IFRS measures; explanation can be found on page 48 of Condensed Interim Financial Report. Unless otherwise noted, all growth rates refer to same period in PY. 1. Source: Novartis Investor Relations in-house consensus as of November 12, 2020.

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