#1September 2023 Investor Presentation SANDOZ SANDOZ#2Disclaimer (1/2) This Presentation has been prepared and issued by and is the sole responsibility of Sandoz Group AG ("Sandoz") and is being furnished to each party to whom it is delivered (each a "Recipient") solely for its own information and in connection with the spin-off of Sandoz from Novartis AG ("Novartis"). For the purposes of this notice, this Presentation includes this document, its contents or any part of it and any related video or oral Presentation, any question or answer session and any written or oral material discussed or distributed during the Presentation meeting (the "Presentation"). There is no issue, public offering or other placement of shares of Sandoz in connection with this Presentation. This Presentation does not constitute or form part of, and should not be construed as any offer or invitation or recommendation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or as a solicitation by or on behalf of Sandoz or Novartis of any offer to purchase, otherwise acquire, sell, otherwise dispose of, issue, or subscribe for, any shares in Sandoz or any other Sandoz or Novartis securities in any jurisdiction. The release, publication or distribution of this Presentation in certain jurisdictions may be restricted by law and therefore persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions in relation to the shares of Sandoz or this Presentation, including those in the paragraphs that follow. No action has been taken or will be taken to permit the possession, issue or distribution of this Presentation in any country or jurisdiction where action for that purpose is required or doing so is restricted by law. Failure to comply with these restrictions may constitute a violation of the securities laws or regulations of such jurisdictions. To the fullest extent permitted by law, Sandoz and its respective representatives, affiliates and advisors disclaim any responsibility or liability for the violation of such requirements by any person. The information contained in this Presentation has been provided by Sandoz and by the other sources identified in this Presentation, has not been verified independently and is provided for information purposes only. THIS PRESENTATION IS NOT A PROSPECTUS WITHIN THE MEANING OF THE SWISS FINANCIAL SERVICES ACT ("FINSA"). INVESTORS SHOULD MAKE THEIR INVESTMENT DECISIONS SOLELY BASED ON THE LISTING PROSPECTUS WHICH IS EXPECTED TO BE PUBLISHED AND WHICH WILL BE SUBMITTED TO SIX EXCHANGE REGULATION LTD IN ITS CAPACITY AS SWISS REVIEW BODY PURSUANT TO ARTICLE 52 FINSA. In making an investment decision (e.g., to hold the shares of Sandoz or American Depositary Receipts with shares of Sandoz underlying them ("ADRS") received in connection with the spin-off, to sell such shares or ADRs so received or to purchase such shares or ADRs after the planned listing of the Sandoz shares), investors must rely on their own investigation of Sandoz, including the merits and risks involved. Sandoz does not make any representation to any investor regarding the legality of an investment in the Sandoz shares by such investor. Each investor should consult with his or her own advisors as to the legal, tax, business, financial and related aspects of an investment in the Sandoz shares. This Presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice. The information contained in this Presentation has been prepared as of the date of this Presentation. Neither the delivery of this Presentation nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of Sandoz since the date hereof or that the information contained herein is correct as of any time after the date hereof. It can also not be ruled out that omissions or errors might have occurred. Sandoz disclaims any obligation to update or revise any information, in particular forward-looking statements, to reflect future events or developments, except as may be required by law. Sandoz and any of its respective affiliates, personally liable directors, officers, employees, advisors or agents, accept no responsibility and have no liability to you or to any third parties, for the accuracy, fairness, timeliness, continued availability or completeness of any data or calculations contained and/or referred to in this Presentation or any other information relating to Sandoz, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available. Neither this Presentation, the listing, the separation, nor the spin-off constitutes or forms part of, and should not be construed as, any offer or invitation or recommendation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or as a solicitation of any offer to purchase, otherwise acquire, sell, otherwise dispose of, issue, or subscribe for, any security, including any shares in Sandoz or any other Sandoz or Novartis securities, in any jurisdiction where it would be unlawful to do so. Investors should familiarize themselves with the prospectus for more details on applicable restrictions. This Presentation does not constitute an offer to sell, or a solicitation by or on behalf of Sandoz or Novartis of an offer to purchase or sell, shares, ADRs or any securities of Sandoz or Novartis in any jurisdiction. The issuance of shares and the ADRs has not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction in the United States. Neither the U.S. Securities and Exchange Commission nor any U.S. state securities commission has approved or disapproved the Sandoz shares or ADRs or passed comment or opinion upon the accuracy of this Presentation. Any representation to the contrary is a criminal offense in the United States. 2 Management Presentation SANDOZ#3Disclaimer (2/2) Neither this Presentation, the listing, the separation, nor the spin-off constitutes or forms part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security, including any shares in Sandoz or any other Sandoz or Novartis securities, in any jurisdiction or any member state of the European Union. In particular, no action has been undertaken, or will be undertaken, in connection with this Presentation, the listing, the separation or the spin-off, to make an offer to the public of any security, including any Sandoz shares or other Sandoz or Novartis securities, in any jurisdiction or any member state of the European Union. This document is not a listing prospectus (or equivalent document) within the meaning of Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended, in particular by Directive 2010/73/EU (including to the extent such Directive has been transposed in any member state of the European Union). Presentations are by their nature abbreviated information and cannot substitute for narrative information. In addition, the information herein is preliminary and is not comprehensive. Consistent with its purpose, this Presentation does not include all information that is material to evaluate the strengths and weaknesses as well as risks and opportunities for Sandoz. This Presentation contains financial information regarding the businesses and assets of Sandoz. Such financial information is of a preliminary nature, subject to change and has not been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this Presentation or any related presentation should not be regarded as a representation or warranty by Sandoz, their affiliates, or any of their respective directors, officers, employees, agents or advisers as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations by Sandoz. This Presentation may include certain measures and other metrics which have not been subject to a financial audit for any period and may be based solely on management accounts and estimates of Sandoz. These financial measures may not be comparable to similarly titled measures as presented by other companies, nor should they be considered as an alternative to the historical financial results or other indicators of the performance based on IFRS. Any prospective financial information and the financial measures contained in this Presentation are forward-looking statements, which are qualified by the subsequent paragraph. Certain financial and statistical information in this presentation has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total. Sandoz uses several key operating measures to track the performance of the portfolio and business. None of these items are a measure of financial performance under generally accepted accounting principles, including IFRS, nor have these measures been reviewed by an external auditor, consultant or expert. These measures are derived from management information systems and may not be comparable to other similarly titled measures terms used by others. Accordingly, no undue reliance should be placed on any of the financial information and financial measures contained in the Presentation. This Presentation contains various forward-looking statements that reflect management's current views with respect to future events and anticipated financial and operational performance. Forward-looking statements as a general matter are all statements other than statements as to historical facts or present facts or circumstances. In some cases, these forward- looking statements can be identified by the use of forward-looking terminology or subjective assessments, including the words "aims", "believes", "estimates", "anticipates", "expects", "projects", "forecasts", "intends", "goals", "targets", "may", "will", "likely," "plans", "continue" "would" or "should" or, in each case, their negative or similar expressions. Other forward- looking statements can be identified in the context in which the statements are made. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates, are inherently subject to risks and uncertainties, and may involve third parties over whom we have no control, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors and could cause actual results to differ materially from what we anticipate. Due to the uncertainty of future developments, to the fullest extent permitted by applicable law, neither Novartis nor Sandoz assume any liability with respect to or in connection with such prospects or other forward-looking statements contained herein. Any forward-looking statements speak only as of the date of this Presentation. Neither Novartis nor Sandoz undertake an obligation to update any prospects or forward- looking statements after the date hereof, even if new information, future events or other circumstances have made them incorrect or misleading, except as may be required by law. Accordingly, investors are cautioned not to place undue reliance on any of the forward-looking statements herein. To the extent available, the industry and market data contained in the Presentation has come from official or third-party sources. Third party industry publications, studies or surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While Sandoz reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, the data contained therein has not been independently verified by Sandoz or anyone else. In addition, certain of the industry and market data contained in the Presentation come from Sandoz own internal research and estimates based on the knowledge and experience of Sandoz management in the market in which Sandoz operates. While Sandoz believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. 3 Management Presentation SANDOZ#4Sandoz at a glance USD 208bn Market size1 USD 9.1bn FY 2022 net sales3,4 A European champion Growing at 8% 1,2 with increasing share of Biosimilars Strong pipeline USD 1.9bn FY 2022 core EBITDA4 100+ markets served >400 Generics 25 Biosimilars Broad coverage across Europe, North America and International And a global leader in Generics and Biosimilars Strong management team Supported by >22,000 employees 5 4 1. Based on Company analysis using IQVIA Analytics Link MAT12-2022 data in LCUSD at gross price, excludes certain sizeable markets with no or limited Sandoz operations; 2. 2022-2031 CAGR for Biocomparable, Early Entry Generics and Generics as defined by IQVIA and includes all ATC and NFC forms; 3. Net sales to third parties; 4. Based on unaudited carve-out financials extract. For additional information regarding the core results, which are non-IFRS measures, including a reconciliation to the most directly comparable measures presented in accordance with IFRS, see "Appendix" starting on slide 31; 5. Approximate number of FTEs at spin-off. Management Presentation SANDOZ#5We have a clear purpose to pioneer access for patients to become the world's leading and most valued Generics and Biosimilars company Purpose Vision Impact 5 Pioneering access for patients Becoming the world's leading and most valued Generics and Biosimilars company ~500 million 1 >USD 180 billion² patients served per annum estimated annual social impact of Sandoz medicines 1. Based on internal analysis, 2. Based on 2022 WifOR Institute analysis. SANDOZ#6Highly experienced and diverse Corporate Officers 1 Not exhaustive Colin Bond Chief Financial Officer Richard Saynor Chief Executive Officer Ingrid Sollerer Group General Counsel Tripti Jha Chief People Officer Pierre Bourdage Chief Commercial Officer Claire D'Abreu-Hayling Chief Scientific Officer Glenn Gerecke Chief Manufacturing and Supply Officer Rebecca Guntern President Europe Alcon Bristol Myers Squibb evotec GSK Keren Haruvi President North America MSD Note: The third-party trademarks above are property of their respective owners; 1. Proposed Corporate Officers of Sandoz Group AG. 6 Management Presentation Francisco Ballester President International NOVARTIS Phion sanofi teva VIFOR PHARMA SANDOZ#7A broad portfolio generating USD 9.1bn in sales Net sales by business FY 2022, in USD Generics 7.1bn +3% 1 79% SANDOZ 9.1bn +4%1 21% One of the broadest Generics portfolios in the industry Biosimilars 1.9bn +9% 1 8 in-market Biosimilar products Increasing contribution from Biosimilars Note: Net sales to third parties based on unaudited carve-out financials extract. Numbers may not add up due to rounding; 1. Growth vs. 2021 in constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31. 7 Management Presentation SANDOZ#8Global scale and a European champion Net sales by region FY 2022, in USD International 2.5bn North America Market leadership and strong growth in Europe Capturing high-growth / high-return opportunities in International markets North America stabilizing Europe 4.5bn 27% +7% 1 SANDOZ +6% 1 50% 9.1bn +4%1 23% 2.1bn -2%1 Note: Net sales to third parties based on unaudited carve-out financials extract. Numbers may not add up due to rounding; 1. Growth vs. 2021 in constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31 8 Management Presentation SANDOZ#9Six strategic levers to drive long-term shareholder value 01 02 03 04 05 06 Attractive Leadership Multiple Margin Attractive market and scale growth improvement fundamentals drivers financial outlook Compelling sustainability story 9 Management Presentation SANDOZ#10Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story Attractive and growing market with increasing share in Biosimilars Off-patent market1 Gross sales, in USD bn 208 23 185 2022 Generics Biosimilars Key drivers 420 CAGR '22-'31 Supportive demographic trends +8% 122 +20% Challenged healthcare systems Growing value of loss of exclusivity 298 +5% 2031 1. Based on Company analysis using IQVIA Analytics Link MAT12-2022 data in LCUSD at gross price, excludes certain sizeable markets with no or limited Sandoz operations; 2022-2031 CAGR for Biocomparable, Early Entry Generics and Generics as defined by IQVIA and includes all ATC and NFC forms 10 Management Presentation Shifting share towards Biosimilars Increasing market adoption of Generics and Biosimilars SANDOZ#11Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story Global leadership and scale; #1 in Europe, Sandoz biggest market Breakdown of global Generics and Biosimilars players by region1 Gross sales, in USD bn SANDOZ Company A Company B Company C Company D 3.4 Company E 3.0 Europe North America International 6.7 9.1 11.2 11.9 #1 in stable and profitable European market At scale but not over-exposed to North America Targeted presence in International 1. Based on Company analysis using data from IQVIA MIDAS MAT 12-2022 data in LCUSD at gross price, excluding ATC J7,K,T and V, NFC V and Z and certain sizeable markets with no or limited Sandoz operations; Biocomparable, Early Entry Generics and Generics as defined by IQVIA. 11 Management Presentation SANDOZ#12Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story Multiple drivers to deliver mid-single digit top-line growth¹ in the mid-term Expanding breadth and depth of pipeline Additional M&A activity E D C B Leveraging A Sales Maximizing near-term Improving product mix strategic partnerships execution Biosimilars launches Mid-single digit net sales growth¹ in the mid-term (2028) Included in business plan 1. In constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31 12 Management Presentation Incremental growth Upside to business plan SANDOZ#13Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story A Focused on sales execution Europe Building on our leadership position 50% of total Sandoz net sales • #1 in Generics and Biosimilars • Capitalize on our footprint, portfolio and pipeline North America Stabilizing and returning to growth 23% • of total Sandoz net sales Leading in segments where we compete Four high-value upcoming Biosimilars launches International Capturing high-growth / high-return opportunities 27% of total Sandoz net sales • Targeting attractive markets Leveraging our portfolio globally, supplemented by M&A and BD&L Note: Net sales to third parties based on unaudited carve-out financials extract 13 Management Presentation SANDOZ#14Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story B Maximizing near-term Biosimilars launches 14 Targeted brand Therapeutic areas Originator net sales targeted¹ HumiraⓇ Immunology ~ USD 21bn adalimumab² TysabriⓇ natalizumab Neurology / Immunology ~ USD 2bn ProliaⓇ / XgevaⓇ Bone diseases ~ USD 7bn denosumab / Oncology EyleaⓇ Ophthalmology ~ USD 11bn aflibercept StelaraⓇ Immunology ~ USD 10bn ustekinumab Key highlights High Concentration Formulation (HCF), proven supply reliability and strong cost position, differentiating features First and potentially only Biosimilar to market, leveraging experience from Omnitrope success Most advanced industry program, market expansion opportunity in Osteoporosis Strong target product profile, including prefilled syringe at launch Exclusive commercialization rights in Europe and North America Current status HyrimozⓇ launched in the US since July 1, 2023 EU launch expected in H2 2023 FDA approval and positive CHMP opinion received Expected FDA approval in Q4 2023 and filed in the EU May 2023 Filing in the US and EU expected in the coming months Phase III completed in November 2022 Note: The third-party trademarks above are property of their respective owners, 1. Originator sale covered based on Company analysis using Evaluate Pharma; at full year prior to expected market formation year 2. Only pertains to adalimumab high concentration formulation (HCF) SANDOZ#15Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story Improving product mix Peak contribution to net sales from launches in USD Last five years Launch of three 31% additional Biosimilars Next five years 35% molecules 31% 1.6bn 49% 69% 3.0bn 51% 69% Launch of ~190 unique Generics products¹ 65% 2022 Biosimilars Generics Complex Generics Standard Generics Note: In USD; 1. Product defined as unique combination of molecule and dosage form. 15 Management Presentation 2027 Launch of four key high-value Biosimilars Planned launch of >120 generics products¹ Significant increase in launch value product with high focus on LoE launches and complex Generics assets SANDOZ#16Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story D Leveraging strategic partnerships to drive long-term growth Key partners Just EVOTEC BIOLOGICS V NOVARTIS Accessing best-in-class Biosimilars technical and manufacturing capabilities polpharma biologics Securing long-term Biosimilars manufacturing capacity SAMSUNG BIOEPIS Note: The third-party trademarks above are property of their respective owners 16 Management Presentation Adding new commercial assets Sandoz as partner of choice due to commercial scale, development and regulatory capabilities SANDOZ#17Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story E Expanding breadth and depth of pipeline 2x expected overall launch contribution to net sales in the next five years¹ >400 Generics in pipeline 25 Biosimilars in pipeline ~3x number of Biosimilars in development over the last five years Increasing contribution from complex products Focused on high-value opportunities -50% of launch contribution to net sales expected to be derived from Biosimilars in the next five years >USD 145bn of originator sales covered² >USD 206bn of originator sales covered³ Note: The third-party trademarks above are property of their respective owners; 1. Compared to prior five years, for both Generics and Biosimilars; 2. LoE value covered based on Company analysis using Sandoz IP and IP database; 3. Originator sale covered based on Company analysis using Evaluate Pharma; at full year prior to expected market formation year. 17 Management Presentation SANDOZ#18Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story Rigorously focused on improving core EBITDA margin to ~24-26% by 2028 Operational improvement C A Volume, price and product mix Growing share of higher margin products and portfolio simplification B Network design Internal and external network simplification Focused vertical integration Establish vertically integrated Biosimilars supply Operational excellence Continue to increase manufacturing productivity Procurement optimization Focus on long-term partnerships and scale Organizational efficiency Efficiencies through a leaner operating model ~200bps ~350bps Core EBITDA margin expansion from ~18-19% in 2023 to ~24-26% by 2028 Included in business plan Note: For additional information regarding the core results, which are non-IFRS measures, see "Appendix" starting on slide 31 18 Management Presentation ~150bps SANDOZ#19Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story Α A Growing high-value Biosimilars contribution Net sales by business 2023 2028 (illustrative) = -20% -80% Mid-single digit growth¹ 2023 Generics Biosimilars Generics Biosimilars -30% ~70% 2028 1. In constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31; 2. LoE value covered based on Company analysis using Sandoz IP and IP database. 19 Management Presentation Broad growth in Generics Attractive pipeline of >400 products targeting USD 145bn of Originator sales² Well-positioned to leverage strong Biosimilars pipeline 25 molecules in the pipeline Four key Biosimilars launches of Adalimumab HCF, Natalizumab, Denosumab and Aflibercept SANDOZ#20Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story B Significant opportunity to further rationalize the network Planned network efficiencies Internal manufacturing sites 18 Current 2023 15 Future 20251 External manufacturing sites² -700 Current 2023 ~350 Future 2027 Network design objectives Improve capital allocation Increase asset efficiency Optimize make-or-buy decisions Invest in cost efficient sites Modernize 1. After announced closures; 2. External finished drugs and API supplier sites. 20 Management Presentation Concentrate external spend Support our launch strategy SANDOZ#21Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook | Compelling sustainability story Ⓒ Procurement optimization expected to contribute substantially to operational improvements in the mid-term Current scale and complexity >USD 4bn of external spend >13,600 suppliers Fragmented and dependent procurement organization Multiple procurement initiatives for standalone Sandoz Leverage scale Reduce complexity Improve organization • • • • • Contract negotiation Consolidate suppliers and leverage strategic partnerships • Drive API and direct material substitution Optimize indirect services • Harmonize and simplify product portfolio • Exploit advanced data, analytics and digital tools Improve internal demand management Simplify internal business processes Global Head Procurement appointed Consolidate procurement team Expedite exit of agreements with Novartis 21 Management Presentation SANDOZ#22Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook | Compelling sustainability story Top line growth momentum continuing into 2023 Net sales by business H1 2023, in USD bn 4.6 0.9 +8%1 4.8 1.0 +15% 1 3.6 3.7 +5% 1 H1 2022 Generics Biosimilars H1 2023 Note: Net sales to third parties based on carve-out financials extract. Numbers may not add up due to rounding; 1. Growth vs. H1 2022 in constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31. 22 Management Presentation Strong volume growth of 12% offsetting price erosion of -4% Continued momentum of Generics business, driven by strong growth in Europe Biosimilars growing double digit without any significant launches SANDOZ#23Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement Attractive financial outlook Compelling sustainability story Growth driven by launches in the US and strong performance in Europe and International Net sales by region 2023 2028 (illustrative) = Mid-single digit growth¹ 2023 Europe North America International 2028 1. In constant currencies. For additional information regarding constant currencies, which is a non-IFRS measure, see "Appendix" starting on slide 31. • 23 Management Presentation Europe consistently performing above the market • ~25% growth contribution Leverage footprint with new launches North America with US returning to growth • ~50% growth contribution • Growth primarily driven by four high-value Biosimilars launches Leveraging growth in International markets ~25% growth contribution Prioritize first-to-market and Biosimilars launches SANDOZ#24Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement Attractive financial outlook Compelling sustainability story Multiple levers to drive margin expansion Core EBITDA Margin = 2023 2028 (illustrative), % of net sales ~150bps ~24 to 26% ~350bps ~100bps ~18 to 19% ~100bps Strong volume growth across regions and businesses, price erosion in line with historical averages Growing share of higher margin products, esp. Biosimilars and complex Generics Operational improvements 2023 Volume Price Product mix Operational improvements Organizational efficiency 2028 driven by four key levers Network design ↑ Focused vertical integration Operational excellence Note: For additional information regarding the core results, which are non-IFRS measures, see "Appendix" starting on slide 31 24 Management Presentation Procurement optimization Leveraging organizational efficiencies through a leaner operating model SANDOZ#25Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook Compelling sustainability story Core EBITDA margin expansion driving strong free cash flow uptake Free cash flow 2021 2028 (illustrative), in USD bn 1.0 0.8 ~2.5x 2021 2022 2028 % of EBITDA 53% 48% -70% Note: 2021 and 2022 based on unaudited carve-out financials extract. For additional information regarding core results and free cash flow, which are non-IFRS measures, see "Appendix" starting on slide 31 25 Management Presentation Attractive cash flow profile and strong balance sheet Increasing EBITDA to cash conversion Working capital optimization Prudent capital structure Capital allocation priorities 1 Investment in organic business 2 Return capital to shareholders 3 Deployment into value generating bolt-on M&A and BD&L SANDOZ#26Attractive market fundamentals | Leadership and scale | Multiple growth drivers Margin improvement | Attractive financial outlook Compelling sustainability story Maintaining optionality with strong balance sheet вод WW Financing at spin-off through bank loans Majority of bank loans expected to be refinanced in the capital markets Net debt to core EBITDA ratio in the range of 1.7-2.0x Targeting investment grade credit profile Note: For additional information regarding the core results, which are non-IFRS measures, see "Appendix" starting on slide 31 26 Management Presentation SANDOZ#27Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook Compelling sustainability story 2023 and mid-term guidance Sales growth1 % Core EBITDA % margin Dividend policy % of core net income 2023 guidance Mid-term guidance (2028E) Mid-single digit Mid-single digit -18-19% 20-30% Full year dividend based on FY 2023 core net income -24-26% 30-40% Note: Unless the context requires otherwise, the expression "mid-term" used in this section refers to a forecast until 2028. As with any projection or forecast, these five-year outlook measures are inherently susceptible to uncertainty and are based on various assumptions that may turn out to be incorrect. For additional information regarding core results and constant currencies, which are non-IFRS measures, see "Appendix" starting on slide 31; 1. Net sales to third parties, in constant currencies Management Presentation 27 SANDOZ#28Attractive market fundamentals | Leadership and scale | Multiple growth drivers | Margin improvement | Attractive financial outlook Compelling sustainability story We incorporate environmental responsibility in the way we operate Sandoz for access Strengthening healthcare systems through affordable medicines Sandoz for environment Decarbonization Sandoz for our people Building a diverse workforce and promoting equal opportunity Democratizing biologics Water and waste management Enhancing inclusion and organizational belonging Responsible manufacturing, access and use of antibiotics 28 Management Presentation Retaining and upskilling Sustainable supply chain talent Underpinned by a strong corporate governance framework SANDOZ#29A compelling spin-off rationale Enhanced focus Greater agility Improved accountability Value creation Generics culture Simplification and optimization of resource allocation Greater freedom to operate and adapt to evolving off-patent medicines market conditions Ambitious targets and clearer business objectives Clear path for profitable growth and enhanced shareholder returns Strengthen entrepreneurial mindset 29 29 Management Presentation SANDOZ#30Creating the #1 European Generics company and a global leader in Biosimilars 100% spin-off New Sandoz shares issued to existing Novartis Shareholders Investment grade credit rating Targeted from rating agencies SIX Swiss Exchange listing Switzerland Complemented by an American Depository Receipt (ADR) Level 1 program in the US Incorporated and headquartered On or around 04 October 2023 24 October 2023 Planned spin-off on track¹ Sandoz nine-months sales 2023 1. Completion of the transaction is subject to certain conditions, including consultation with works councils and employee representatives (as required), general market conditions, tax rulings and opinions, final Board of Directors endorsement and shareholder approval in line with Swiss corporate law 30 Management Presentation SANDOZ#31Appendix SANDOZ#32Glossary Abbreviation API ATC CAGR EMA FDA FTE MAT PPE Definition Active pharmaceutical ingredient Anatomical therapeutic chemical Compound annual growth rate European Medicines Agency Food and Drug Administration Full-time equivalent Moving annual total (refers to rolling 12 months average) Property, plant and equipment 32 Management Presentation SANDOZ#33Biosimilar pipeline (status as of September 2023) Therapeutic areas Immunology Originator net sales targeted ~USD 21bn¹ ~USD 2bn¹ Source In-house Polpharma Biologics ~USD 11bn¹ In-house Samsung Bioepis Targeted brand Humira (Adalimumab)³ Tysabri (Natalizumab) Neurology / Immunology ProliaⓇ/XgevaⓇ (Denosumab) Bone diseases / ~USD 7bn1 In-house Oncology Eylea® (Aflibercept) Ophthalmology StelaraⓇ (Ustekinumab) Immunology ~USD 10.3bn² HerceptinⓇ (Trastuzumab) Oncology ~USD 1.8bn² EirGenix AvastinⓇ (Bevacizumab) Oncololgy ~USD 1.7bn² Lantus (Glargine) Diabetes ~USD 2bn² Gan & Lee HumalogⓇ (Lispro) NovoLogⓇ (Aspart) 15 other undisclosed compounds Diabetes Diabetes Bio-Thera Solutions ~USD 1.8bn² ~USD 4bn² Gan & Lee Gan & Lee Current status Launched in US July 2023 EU launch expected H2 2023 Approved US August 2023 File accepted in EU in July 2022 File accepted in US February 2023 and EU May 2023 Positive Phase III results August 2023 Phase III completed in November 2022 File Accepted in US December 2021 and EU January 2022 File Accepted in US January 2021 and EU November 2020 File Accepted in US February 2023 and EU in August 2023 File Accepted in US in June 2023 File Accepted in US in June 2023 Note: Status as of September 2023; the third-party trademarks above are property of their respective owners, 1. Originator sale covered based on Company analysis using Evaluate Pharma; at full year prior to expected market formation year, Originator sales from Evaluate Pharma for 2023 since all of these molecules are post LOE, 3. Only pertains to Adalimumab high concentration formulation (HCF) 2. 33 Management Presentation SANDOZ#34Segment to Carve-out sales, business and geographical breakdown In USD bn Segment sales FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 9.6 9.6 9.2 4.6 4.8 Adjustments¹ -0.1 -0.2 -0.2 0.0 0.0 Carve-out sales 9.5 9.4 9.1 4.6 4.8 vs PY (in USD) -0% -4% 5% vs PY (in cc²) -2% 4% 8% Carve-out sales 9.5 9.4 9.1 4.6 4.8 Generics 7.7 7.5 7.1 3.6 3.7 Biosimilars 1.8 1.9 1.9 0.9 1.0 Carve-out sales 9.5 9.4 9.1 4.6 4.8 Europe 4.7 4.8 4.5 2.3 2.5 North America 2.5 International 2.3 2.2 2.5 2.1 1.0 1.0 2.5 1.2 1.2 Note: Based on Sandoz division's reporting and carve-out financials. Numbers may not add up due to rounding. 1. Reflect mainly the transfers of the Sandoz Division's biotechnology manufacturing services to other companies' activities and the Coartem brand to the Innovative Medicines Division; 2. Constant currencies 34 Management Presentation SANDOZ#35Segment Operating Income to Carve-out EBITDA bridge In USD bn FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 Segment Operating Income 1.0 1.6 1.4 0.7 0.5 Adjustments¹ -0.2 -0.2 -0.2 -0.3 -0.2 Carve-out Operating Income 0.8 1.4 1.2 0.9 0.7 Depreciation of PPE and ROU 0.3 0.3 0.2 0.1 0.1 assets Amortization of intangible 0.4 0.2 0.2 0.1 0.1 Impairment Others 0.3 0.0 0.1 0.0 0.0 Carve-out EBITDA 1.8 1.9 1.7 1.0 1.0 Note: Based on Sandoz division's reporting and carve-out financials. Numbers may not add up due to rounding. 1. Reflect mainly the transfers of the Sandoz Division's biotechnology manufacturing services to other companies' activities and the Coartem brand to the Innovative Medicines Division. 35 Management Presentation SANDOZ#36Segment Core Operating Income to Carve-out Core EBITDA bridge In USD bn FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 Segment Core Operating Income 2.3 2.1 1.9 1.0 0.9 Adjustments¹ -0.2 -0.2 -0.2 -0.1 -0.1 Carve-out Core Operating Income 2.1 1.9 1.7 0.9 0.9 Depreciation of PPE and ROU 0.3 0.2 0.2 0.1 0.1 assets Amortization of intangible 0.0 0.0 0.0 0.0 0.0 Impairment / Others 0.0 0.0 0.0 0.0 0.0 Carve-out Core EBITDA 2.4 2.1 1.9 1.0 1.0 Note: Based on Sandoz division's reporting and carve-out financials. Numbers may not add up due to rounding. 1. Reflect mainly the transfers of the Sandoz Division's biotechnology manufacturing services to other companies' activities and the Coartem brand to the Innovative Medicines Division. 36 Management Presentation SANDOZ#37Non-IFRS financial definitions included in this presentation Core results Sandoz core results - including core EBITDA, core operating income and core net income - exclude fully the amortization and impairment charges of intangible assets, excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss and certain acquisition and divestment-related items. The following items that exceed a threshold of USD 25 million are also excluded: integration- and divestment-related income and expenses; divestment gains and losses; restructuring charges / releases and related items; legal related items; impairments of property, plant and equipment; software and financial assets, and income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a USD 25 million threshold. Sandoz believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since core measures exclude items that can vary significantly from year to year, they enable a better comparison of business performance across years. For this same reason, Sandoz uses these core measures in addition to IFRS and other measures as important factors in assessing its performance. The following are examples of how these core measures are utilized: - In addition to monthly reports containing financial information prepared under IFRS, senior management receives a monthly analysis incorporating these core measures; - Annual budgets are prepared for both IFRS and core measures. As an internal measure of Sandoz' performance, the core results measures have limitations, and the Sandoz' performance management process is not solely restricted to these metrics. A limitation of the core results measures is that they provide a view of the Sandoz' operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of purchased intangible assets, impairments to property, plant and equipment and restructurings and related items. Constant currencies Changes in the relative values of non-US currencies to the US dollar can affect Sandoz' financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, Sandoz presents information about its net sales and various values relating to operating and net income that are adjusted for such foreign currency effects. Constant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the combined income statement excluding the impact of fluctuations in exchanges rates: - the impact of translating the income statements of combined entities from their non-USD functional currencies to USD; - the impact of exchange rate movements on the major transactions of combined entities performed in currencies other than their functional currency. Sandoz calculates constant currency measures by translating the current year's foreign currency values for sales and other income statement items into USD (excluding the IAS 29 "Financial Reporting in Hyperinflationary Economies" adjustments to the local currency income statements of subsidiaries operating in hyperinflationary economies), using the average exchange rates from the prior year and comparing them to the prior year values in USD. Sandoz uses these constant currency measures in evaluating its performance, since they may assist the Company in evaluating its ongoing performance from year to year. However, in performing its evaluation, Sandoz also considers equivalent measures of performance that are not affected by changes in the relative value of currencies. Growth rate calculation For ease of understanding, Sandoz uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared to the prior year is considered favorable and hence shown as a positive change (growth). Free cash flow Sandoz defines free cash flow as net cash flows from operating activities and cash flow from investing activities associated with the purchase or sale of property, plant and equipment, of intangible assets, of financial assets and of other non-current assets. Excluded from free cash flow are cash flows from investing activities associated with acquisitions and divestments of businesses and of interests in associated companies, purchases and sales of marketable securities, commodities, time deposits and net cash flows from financing activities. Free cash flow is a non-IFRS measure and is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS. Free cash flow is presented as additional information because management believes it is a useful supplemental indicator of the Sandoz' ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is a measure of the net cash generated that is available for investment in strategic opportunities, returning to shareholders and for debt repayment. Free cash flow is a non-IFRS measure, which means it should not be interpreted as a measure determined under IFRS. Free cash flow conversion Sandoz defines free cash flow conversion as free cash flow divided by EBITDA. This measure represents a company's ability to convert its operating profits into free cash flow (FCF) in a given period. EBITDA Sandoz defines earnings before interest, tax, depreciation and amortization (EBITDA) as operating income, excluding depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization of intangible assets, and impairments of property, plant and equipment, right-of-use assets and of intangible assets. Net debt Sandoz defines net debt as current financial debts and derivative financial instruments plus non-current financial debt less cash and cash equivalents and marketable securities, commodities, time deposits and derivative financial instruments. Net debt is presented as additional information because it sets forth how management monitors net debt or liquidity and management believes it is a useful supplemental indicator of the Sandoz' ability to pay dividends, to meet financial commitments, and to invest in new strategic opportunities, including strengthening its balance sheet. 37 Management Presentation SANDOZ