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Reimagining Medicine

Company overview Financial review Conclusions Appendix References Novartis has maintained a consistent approach to its capital allocation priorities; initiating up-to USD 15bn share buyback STRATEGY Investing in the business Investments in organic business¹ USD 43bn of R&D 2018-2022 USD 6bn of CAPEX 2018-2022 Returning to shareholders USD 59bn distributed² 2018-2022 Growing annual dividend in CHF USD 35bn of dividends 2018-2022 USD 7.3bn paid out in Q1-2023 Value-creating bolt-ons USD 30bn (approx.) 2018-2022 Substantial cash generation No rebasing post planned Sandoz spin-off Chinook³, Avrobio4, DTX Pharma acquisition ' Share buybacks (SBB) USD 24bn of buybacks 2018-2022 USD 15bn SBB (announced Dec 2021) completed in June 2023 SBB of up to USD 15bn planned to be completed by end 2025 1. Core R&D and CAPEX actuals 2018-2022. 2. Through dividends and share buybacks. 3. Subject to customary closing conditions; closing expected H2 2023. 4. Acquisition of Avrobio cystinosis program. 21 Investor Relations | Q2 2023 Results ✓ NOVARTIS | Reimagining Medicine
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