Novartis provides restated consolidated income statement data for 2010 and Q1 2011 following the merger with Alcon; no change to total reported Group data

Novartis International AG /
Novartis provides restated consolidated income statement data for 2010 and Q1
2011 following the merger with Alcon; no change to total reported Group data
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement. * Restated income statement data to reflect new divisional structure
* Supplementary Alcon pro forma income statement data to provide base for
comparison for remainder of 2011
* New reporting structure effective second quarter 2011
Basel, May 18, 2011 - Novartis provides unaudited restated and pro forma
consolidated income statement data after the completion of the merger with
Alcon, Inc.The segmental consolidated income statement data has been amended to reflect the
new divisional structure following the Alcon merger. The new reporting structure
will be effective from the second quarter of 2011.The new divisional structure reflects the following changes: The Alcon Division
will include CIBA Vision and certain Pharmaceuticals Division ophthalmology
products. Falcon, the US generics business of Alcon, Inc. is transferred to the
Sandoz Division. Certain residual operational costs incurred for the Consumer
Health Division headquarters are transferred to Corporate. The restated income
statement data reflects the actual Novartis shareholding in Alcon in any given
quarter.These restatements do not change the Group's total consolidated income statement
data released on April 19, 2011.In addition, supplementary quarterly pro forma consolidated income statements
per division are provided for the purpose of setting a base for comparison with
the 2011 consolidated income statements of the Novartis Group. The pro forma
consolidated income statement data for 2010 down to operating income amends the
restated data to reflect the consolidation of Alcon Inc. as if it had occurred
on January 1, 2010 and as a consequence includes the 100% consolidation of
Alcon, Inc. for the entire calendar year 2010. It also adjusts for the impacts
of divestments required by regulators to approve the acquisition as well as for
exceptional costs related to the acquisition of the majority ownership of Alcon,
Inc. No pro forma data is provided below operating income level.An investor call will be held on May 18, 2011 at 15:30h CET to discuss the
unaudited restated and pro forma consolidated income statement data. The
restated and pro-forma consolidated income statements, together with a fully
updated Q1 2011 press release based on restated and pro forma numbers are
available on www.novartis.com.Disclaimer
The foregoing release contains forward-looking statements that can be identified
by terminology such as "effective," "will," or similar expressions, or by
express or implied discussions regarding potential growth opportunities from the
merger of Alcon and Novartis, or the potential impact on Alcon or Novartis of
the merger; or any potential synergies, strategic benefits or opportunities as a
result of the merger; or regarding potential future sales or earnings of the
Novartis Group or any of its divisions as a result of the merger or otherwise.
You should not place undue reliance on these statements. Such forward-looking
statements reflect the current views of the Group regarding future events, and
involve known and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any future results, performance
or achievements expressed or implied by such statements. There can be no
guarantee that Novartis will be able to realize any of the potential synergies,
strategic benefits or opportunities as a result of the merger with Alcon. Nor
can there be any guarantee that the Novartis Group, or any of its divisions,
will achieve any particular financial results, whether as a result of the merger
or otherwise. In particular, management's expectations could be affected by,
among other things, unexpected regulatory actions or delays or government
regulation generally; unexpected clinical trial results, including additional
analyses of existing clinical data or unexpected new clinical data; the Group's
ability to obtain or maintain patent or other proprietary intellectual property
protection; disruptions from the merger and integration with Alcon making it
more difficult to maintain business and operational relationships, and
relationships with key employees; unexpected product manufacturing issues;
uncertainties regarding actual or potential legal proceedings, including, among
others, product liability litigation, litigation regarding sales and marketing
practices, government investigations and intellectual property disputes;
competition in general; government, industry, and general public pricing and
other political pressures; uncertainties regarding the after-effects of the
recent global financial and economic crisis; uncertainties regarding future
global exchange rates and uncertainties regarding future demand for our
products; uncertainties involved in the development of new healthcare products;
the impact that the foregoing factors could have on the values attributed to the
Group's assets and liabilities as recorded in the Group's consolidated balance
sheet; and other risks and factors referred to in Novartis AG's current Form 20-
F on file with the US Securities and Exchange Commission. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described herein as
anticipated, believed, estimated or expected. Novartis is providing the
information in this 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.About Novartis
Novartis provides healthcare solutions that address the evolving needs of
patients and societies. Focused solely on healthcare, Novartis offers a
diversified portfolio to best meet these needs: innovative medicines, eye care,
cost-saving generic pharmaceuticals, consumer health products, preventive
vaccines and diagnostic tools.  Novartis is the only company with leading
positions in these areas. In 2010, the Group's continuing operations achieved
net sales of USD 50.6 billion, while approximately USD 9.1 billion (USD 8.1
billion excluding impairment and amortization charges) was invested in R&D
activities throughout the Group. Headquartered in Basel, Switzerland, Novartis
Group companies employ approximately 119,000 full-time-equivalent associates and
operate in more than 140 countries around the world. For more information,
please visithttp://www.novartis.com.Novartis Media Relations Central media line : +41 61 324 2200 Eric Althoff
Novartis Global Media Relations
+41 61 324 7999 (direct)
+41 79 593 4202 (mobile)
eric.althoff@novartis.com
e-mail: media.relations@novartis.com
Novartis Investor Relations Central phone: |+41 61 324 7944 |  |
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Susanne Schaffert |+41 61 324 7944 |North America: |
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Pierre-Michel |+41 61 324 1065 |Richard Jarvis |+1 212 830 2433
Bringer | | |
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Thomas Hungerbuehler|+41 61 324 8425 |Jill Pozarek |+1 212 830 2445
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Isabella Zinck |+41 61 324 7188 |Edwin Valeriano|+1 212 830 2456
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e-mail: |e-mail:
investor.relations@novartis.com  |investor.relations@novartis.com --- End of Message --- Novartis International AG
Postfach Basel WKN: 904278;ISIN: CH0012005267;Media Release (PDF):
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