About Alcon
On which two stock exchanges will the new ALC stock be listed?
SIX
NYSE
From a shareholder's perspective, what does 'Tax-free spin' mean?
1. No gain or loss should be recognized by, or be includible in the income of, a U.S. Holder as a result of the distribution
2. The aggregate tax basis of the Novartis shares and our shares held by each U.S. Holder immediately after the distribution should be the same as the aggregate tax basis of the Novartis shares held by the U.S. Holder immediately before the distribution
3. The holding period of our shares received by each U.S. Holder should include the holding period of its Novartis shares
Who are Alcon's CEO and Chairman of the board?
David Endicott and Mike Ball
What are Alcon's two core businesses and what was 2018 revenue from each segment?
Surgical ($4B)
Vision Care ($3.15B)
What are the expected one time costs to Alcon associated with the separation?
$0.3B
What services were provided to Alcon by NBS?
Human Resource Operations
Real Estate and Facility Services
Security
Procurement
Information Technology
Commercial and medical support services (Formerly PLS)
Financial Reporting and Accounting
Who did Novartis acquire Alcon from and when?
Nestle, in 2011
If a shareholder currently holds 10,000 Novartis AG shares on spin date, how many ALC shares will that shareholder receive, upon separation?
A: 2000 ALC shares
List 5 corporate functions that have to be stood up in the new, independent Alcon
1. Tax
2. Treasury
3. Internal Audit
4. Investor Relations
5. Corporate Governance
6. Communications
7. Compliance
Provide 3 of the following 5 data points:
1. Number of associates worldwide
2. Number of countries Alcon operates in
3. Number of manufacturing facilities
4. Number of countries in which Alcon consumers and patients reside
5. Percent of sales from oUS markets
1. 20,000+ associates
2. 74 countries
3. 18 MTO sites
4. 140+ countries
5. 59% revenue from international markets (oUS)
List 3 of 6 potential benefits of the spin expected by the board (strategic rationale of the spin)
1. Enhanced strategic and management focus.
2. Creation of a more nimble medical device company with ability to quickly focus on innovating products to meet the needs of the market.
3. Distinct investment identity.
4. More efficient allocation of capital.
5. Direct access to capital markets.
6. Alignment of incentives with performance objectives.
In which countries are the Puurs and Cusi manufacturing locations?
Belgium and Spain, respectively
Alcon continues to engage in strategic M&A deals. What are two acquisitions Alcon made in 2018?
(Hint: One per business segment)
1. TrueVision Systems, Inc. for $146M (Dec 19, 2018) - Surgical
2. Tear Film Innovations, Inc for 145M (Dec 17, 2018) - Vision Care
Name three types of agreement that Alcon/NVS will have post-spin (No acronyms)
1. Transitional Service Agreement
2. Transitional Distribution and Services Agreement
3. Information Access Agreement
4. Separation and Distribution Agreement
5. Employee Matters Agreement
6. Tax Matters Agreement
7. Manufacturing and Supply Agreement
8. Certain IP arrangements
9. Promotional Services Agreement
10. Pharmacovigilance Services Agreement
What is a 20-F filing?
An annual report filed with the SEC by certain foreign private issuers to provide financial and other company information