#1YYYYYYYY AYYAYYAYAY YYYYYYYY AYYAY YYAYY AYYAY Novartis Investor Relations ATTAT YYLYY AYYAY YYYY AYYAY YYAYY AYYAY YYLYY AYYAY YYLYY AYYAY YYLYY AYYAY YYAYY AYYAY AYY AYYAYYYY LYYAYYAYAY YYYYYYYY AYYAYYAYAY YYYYYYYY AY Y AY YYAY YY AYYAYYAYAY YYYYYYYY AYYAYYAYAY YYYYYYYY AYYAYYAYAY YY' LYLY YYY LYLY YYYY YAY Novartis New Organizational Model Powering our next phase of innovation, growth, and productivity Investor presentation April 04, 2022 U NOVARTIS | Reimagining Medicine#2Disclaimer 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 our new organizational structure; potential new products, potential new indications for existing products, potential product launches, or regarding potential future revenues from any such products; or regarding potential future, pending or announced transactions and/or reorganizations; regarding potential future sales or earnings of the Group or any of its divisions or products; or by discussions of strategy, plans, expectations or intentions; or regarding the strategic review of Sandoz. 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: the potential that the strategic benefits, synergies or opportunities expected from our new organizational structure may not be realized or may be more difficult or take longer to realize than expected; global trends toward healthcare cost containment, including ongoing government, payer and general public pricing and reimbursement pressures and requirements for increased pricing transparency; 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; 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 uncertainties in the research and development of new 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; 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 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#3Vas Narasimhan Chief Executive Officer 3 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#4Novartis has transformed into a focused medicines company, and delivered consistent performance Our strategy Focused medicines company powered by technology leadership in R&D, world-class commercialization, global access and data science Portfolio simplification in parallel Delivered strong performance & returned capital to shareholders Exit of Animal Health, Vaccines, Consumer Health Alcon spin-off Sale of Roche stake, returning majority of proceeds to shareholders through a buyback Sandoz strategic review USD 31bn in M&A / BD&L since 2018 strengthening Innovative Medicines (IM) portfolio Consistent IM top-line growth: 7% sales CAGR from 2018-2021 Consistent IM bottom-line delivery: 13% Core Oplnc CAGR and 4ppts margin improvement since 2018 Innovation capability expansion; built strengths in cell & gene, RNAi, radioligand therapy USD 36bn in share buybacks and dividends from 2018-2021 Source: Novartis Annual Report. Constant currencies (cc) and core results are non-IFRS measures. An explanation of our non-IFRS measures can be found in our Condensed Financial Report for Q4 and FY 2021, published February 2, 2022. 4 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#5We continue to be confident in our outlook Medium-term growth driven by 6 key brands with multi-billion dollar outlook CosentyxⓇ, EntrestoⓇ, KesimptaⓇ, KisqaliⓇ, ZolgensmaⓇ, LeqvioⓇ Recently launched ScemblixⓇ and Pluvicto™ Breadth of pipeline 20+ assets with USD ≥1bn potential, Illustrative Group sales USD billion, cc Without any pipeline contribution ~+1.5% CAGR CC ~+5% CAGR CC if Entresto LoE beyond 20262 +4% CAGR CC -9 Cosentyx® Leqvio® Lu-PSMA-617 ScemblixⓇ Other pipeline TasignaⓇ LucentisⓇ which could be approved by 2026 Pipeline quality 85% of pipeline first-in-class/first-in-indication XolairⓇ SandostatinⓇ GilenyaⓇ KesimptaⓇ Kisqali® ZolgensmⓇ Piqray® Sandoz Afinitor® EntrestoⓇ 2020 Future Gx impact up to 20261 IM Core Margin 35% In-market growth drivers / Base business IM Division pipeline probabilized 2026 IM Core Margin High 30s Excludes potential impact from US healthcare reform. Compared to R&D Day 2021, removed Ligelizumab in CSU 1. Estimated based on relevant patents; further extensions possible. Additional products include Promacta, Q-Family and Votrient 2. For internal forecasting purposes we do not expect Gx in US at least until 2025. Constant currencies (cc) and core results are non-IFRS measures. An explanation of our non-IFRS measures can be found in our Condensed Financial Report for Q4 and FY 2021, published February 2, 2022. We have not provided a reconciliation for CAGR CC IM core margin in future periods because we cannot, without unreasonable effort, predict the amounts and timing of events affecting the items we exclude from such measures. 5 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#6Top 2022 priorities for Novartis 1 Successful launches: LeqvioⓇ, KesimptaⓇ, 177 Lu-PSMA-617, ScemblixⓇ 2 Maintain growth momentum: YC E ►Z KKL 3 Progress pipeline: 20+ assets with significant sales potential, approval by 2026, on track 4 Optimize portfolio: Sandoz review, update end 2022; disciplined BD 5 Deliver returns: Continue productivity initiatives, especially manufacturing, business services 6 Reinforce foundations: Culture to drive performance, data science to drive value, ESG leadership 6 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#7Now creating a simplified organizational model designed to support our innovation, growth and productivity ambitions 1 Integrated IM1 business, with US and International at ECN² Increase focus and agility, drive synergies, leverage scale for growth drivers, rapidly deploy technology across IM, and achieve a top 5 position in the US 2 New Strategy & Growth function That aligns and drives end-to-end enterprise portfolio needs for growth across internal and external pipeline opportunities 3 Single Operations unit and integrated global G&A functions To realize economies of scale/drive productivity, ensure success of enterprise technology projects and optimize G&A functions 1. IM Innovative Medicines 2. ECN Executive Committee of Novartis 7 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#81 Integrating Pharma and Oncology with separate US and International units to increase focus, competitiveness and synergies FROM: Separate Pharma and Oncology organizations adding complexity President PHARMA President ONCOLOGY Global functions Global functions Regions / Key Countries Clusters Regions Clusters Countries Countries TO: Reduced complexity and redundancies, while elevating US business IM International IM US IM Int. Regions / large markets Global marketing functions US Commercial Ops IM Int. Clusters / Countries Goal to be top 5 in the US + maintain leadership Internationally 8. NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#92 Combining R&D portfolio management, strategy and business development to strengthen pipeline with high value medicines FROM: Strategy and portfolio functions across organization TO: Single unit driving growth + enterprise-wide prioritization of internal and external innovation 1 Portfolio Management 2 Strategy 3 M&A and BD&L Chief Executive Officer Pharma Oncology GDD & NIBR In scope Out of scope Chief Strategy & Growth Officer Corporate Strategy Portfolio Analytics/ Management Business Development¹ Strategic Competitive Intelligence Deliver high value assets (internal and external) to drive consistent above peer median growth 1. Incl. small scale M&As; large scale M&A remaining with Finance 9 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#103 Stronger Operations unit with integrated G&A support functions to enhance operational efficiencies, scale and synergies FROM: CTS/ G&A structure no longer fit for purpose for a Focused Medicines Company TO: Simplified functional accountabilities and E2E Operations unit as backbone for Novartis growth За 3b За NTO CTS Global G&A support functions Finance, P&O, Legal, ERC Operations NTO Quality Procurement REFS Procurement IT Resources embedded in business units Business units Operations & Strategy Data & Al, Digital Operations & Strategy G&A resourcing determined by individual functions, regions, countries FRA/HR Ops CTS G&A NTO Quality Procurement REFS IT Data & Al, Digital Operations & Strategy 3b Global G&A G&A Operations Resources embedded in business units Accelerate technology transformation and increase productivity, while maintaining excellent quality and service levels NTO Novartis Technical Operations CTS = Customer & Technology Solutions REFS= Real Estate & Facility Services FRA Financial Reporting & Accounting P&O People & Organization ERC Ethics, Risk & Compliance 10 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#11Novartis executive team focused on high performance 3 changes Integrated IM 1 business, with US and International at ECN 2 Executive Committee of Novartis 2 Vasant Narasimhan Chief Executive Officer Integrated Strategy, Growth & Portfolio Jay Bradner President, NIBR 3 Shreeram Aradhye¹ President, Global Drug Development & Chief Medical Officer External² Chief Strategy & Growth Officer Marie-France Tschudin President, IM International & CCO Single Operations unit and integrated global G&A functions Steffen Lang President, Operations Harry Kirsch Chief Financial Officer Karen Hale Chief Legal Officer 1 Executive Committee Members Victor Bulto³ President, IM US Rob Kowalski Chief People & Organiz. Officer Klaus Moosmayer Chief Ethics, Risk and Compliance Officer Kees Roks4 Chief Audit Officer Lutz Hegemann President, Global Health 1. Effective May 16 2. L. Hegemann to act as ad-interim for Chief Strategy & Growth Officer 3. ECN member effective May 1, 2022 4. Effective May 1, 2022 11 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION Michael Willi Chief Communications Officer Richard Saynor Chief Executive Officer Sandoz NOVARTIS | Reimagining Medicine#12Simplified structure will help to drive value creation Short-term Accelerate growth ■ Strong pipeline management, business development ■ Accelerate technology transformation, create novel digital solutions, increase productivity ■ More agile M&S resource allocation to top brands Mid- to long-term Innovation and sales growth ■ Above peer median sales growth ◉ Bringing Novartis into top 5 in the US Productivity and focus for R&D and business development Simpler, faster, more flexible decision making 12 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#13Harry Kirsch Chief Financial Officer 13 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#14Value creation through growth and operational efficiencies Fully focused on topline growth (R&D, NTO not impacted; minimize disruption to frontline) Reducing complexity in organization above field force, reduce SG&A as % of sales to benchmarks ☑ USD ≥1bn SG&A annual savings by 2024 IM core margin mid-term high end of high 30s IM core margin mid- to long-term to reach low 40s 14 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#15SG&A is the key focus for improving margins Novartis SG&A stable at -29% of sales Core SG&A as % of sales Median Novartis 31 30 29 29 20 29 Novartis above peer median SG&A spend Core SG&A 2021 as % of sales Illustrative Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Company 10 2017 2018 2019 2020 2021 Company 11 Novartis Company 12 Company 13 Company 14 Median 25% 29% Note: Peer group includes 14 pharma companies: Bristol Meyers Squibb, Johnson & Johnson, Pfizer, Eli Lilly, AstraZeneca, GSK, Roche, AbbVie, Merck, Sanofi, Takeda, Gilead, Amgen and Novo Nordisk Source: S&P Capital IQ, Evaluate Pharma (Oct 2021); Novartis 15 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#16Revising upwards our expectations for IM core margin to low 40s mid- to long-term Innovative Medicines % Core margin 16 32 31 36 35 =4 34 Low High end of high 30s 40s 2017 2018 2019 2020 2021 Mid-term Mid- to long-term NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#17SG&A savings fully embedded by 2024, mainly from efficiencies in operations, M&S duplication and G&A streamlining Estimated annual savings Illustrative 17 ≥USD 1bn Integrated Operations unit synergies Simplification of M&S structure (non-customer-facing) Streamlining G&A functions 2022 2023 2024 Minimal 2022 impact, offsetting energy costs and inflation pressure in supply chain NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION One-time restructuring cost estimated at 1 to 1.5x annual structural savings NOVARTIS | Reimagining Medicine#18Welcoming our colleagues to their new roles Victor Bulto President, IM US Marie-France Tschudin President, IM International & CCO Steffen Lang President, Operations Shreeram Aradhye President, Global Drug Development & Chief Medical Officer 18 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#19Conclusions ☐ Novartis transformed into a focused medicines company, and delivered consistent performance New organizational model to support our innovation, growth and productivity ambitions ☐ Creating value through growth and operational efficiencies 19 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION NOVARTIS | Reimagining Medicine#20Upcoming events First quarter 2022 results April 26, 2022 Meet Novartis Management September 2022 Focus on: Q1 financial results 20 NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION Focus on: Meet the team, strategy, and update on actions NOVARTIS | Reimagining Medicine