Press Release: Novartis continues to deliver -4-

The Novartis Board of Directors announced today that it is nominating Elizabeth M. McNally, MD, PhD, for election to the Board. Dr. McNally is Director of the Center for Genetic Medicine at Northwestern University, Feinberg School of Medicine, and as a practicing cardiologist and renowned research leader specializing in the genetics of cardiovascular and neuromuscular disorders, her clinical and scientific expertise will add greatly to the Novartis Board of Directors. Dr. McNally completed her MD and PhD at the Albert Einstein College of Medicine, and trained in Internal Medicine and Cardiology at the Brigham and Women's Hospital at Harvard Medical School. She is a member of the National Academy of Medicine, serves on the Board of the Muscular Dystrophy Association, and is also the Founder and CEO of Ikaika Therapeutics.

Board of Directors announcements

The Board also noted Charles L. Sawyers and William T. Winters will not stand for re-election at the AGM 2025 in accordance with the 12-year term limit. The Board of Directors and the Executive Committee of Novartis thank them for their outstanding contributions and many years of distinguished service.

Key figures(1)

Continuing Q2 Q2 H1 H1

operations(2) 2024 2023 % change 2024 2023 % change

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

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Net sales 12 512 11 437 9 11 24 341 22 235 9 11

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Operating income 4 014 2 807 43 47 7 387 5 425 36 43

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As a % of sales 32.1 24.5 30.3 24.4

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Net income 3 246 2 271 43 49 5 934 4 421 34 43

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EPS (USD) 1.60 1.09 47 52 2.91 2.12 37 47

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Cash flows from

operating activities 4 875 3 517 39 7 140 6 369 12

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Non-IFRS measures

Free cash flow 4 615 3 292 40 6 653 5 976 11

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Core operating income 4 953 4 240 17 19 9 490 8 146 16 21

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As a % of sales 39.6 37.1 39.0 36.6

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Core net income 4 008 3 502 14 18 7 689 6 735 14 19

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Core EPS (USD) 1.97 1.69 17 21 3.77 3.23 17 22

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Discontinued Q2 Q2 H1 H1

operations(2) 2024 2023 % change 2024 2023 % change

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

------ ------ ----- --- ------ ------ ----- ---

Net sales 2 449 nm nm 4 952 nm nm

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Operating income 113 nm nm 351 nm nm

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As a % of sales 4.6 7.1

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Net income 46 nm nm 190 nm nm

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Non-IFRS measures

Core operating income 428 nm nm 935 nm nm

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As a % of sales 17.5 18.9

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Q2 Q2 H1 H1

Total Company 2024 2023 % change 2024 2023 % change

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

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Net income 3 246 2 317 nm nm 5 934 4 611 nm nm

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EPS (USD) 1.60 1.11 nm nm 2.91 2.20 nm nm

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Cash flows from

operating activities 4 875 3 576 nm nm 7 140 6 533 nm nm

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Non-IFRS measures

Free cash flow 4 615 3 275 nm nm 6 653 5 995 nm nm

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Core net income 4 008 3 811 nm nm 7 689 7 425 nm nm

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Core EPS (USD) 1.97 1.83 nm nm 3.77 3.54 nm nm

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nm=not meaningful

1. Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 43 of the Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year.

2. As defined on page 33 of the Interim 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 Interim Financial Report at the link below:

https://ml-eu.globenewswire.com/resource/download/a9652d15-40e9-4a4b-b225-32014f48e99e/

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," "will," "continue," "ongoing," "grow," "launch," "expect," "deliver," "focus," "address," "accelerate," "deliver," "remain," "scaling," "guidance," "outlook," "long-term," "priority," "potential," "can," "trajectory" 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 potential future, pending or announced transactions, including completion of the acquisition of MorphoSys AG; 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. There can be no guarantee that the investigational or approved products described in this press release will be submitted or approved for sale or for any additional indications or labeling in any market, or at any particular time. Nor can there be any guarantee that such products will be commercially successful in the future. Neither can there be any guarantee expected benefits or synergies from the transactions described in this press release will be achieved in the expected timeframe, or at all. 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

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July 18, 2024 01:00 ET (05:00 GMT)