Novartis International AG : Novartis delivered solid performance in the first quarter, with eight key regulatory approvals and

Novartis International AG : Novartis delivered solid performance in the first
quarter, with eight key regulatory approvals and all divisions contributing to
                                    growth

Novartis International AG / Novartis delivered solid performance in the first
quarter, with eight key regulatory approvals and all divisions contributing to
growth . Processed and transmitted by Thomson Reuters ONE. The issuer is
solely responsible for the content of this announcement.

  *Group net sales of USD 14.0 billion grew 2% (+4% cc[1])

       *Core operating income of USD 3.7 billion (+3%, +6% cc) grew ahead of
         sales, improving core operating income margin
       *Core EPS of USD 1.32 grew 6% (+9% cc)
       *Free cash flow reached USD 1.3 billion (-37%)

  *Sustained commitment to innovation resulted in eight key approvals in the
    EU and US and strong pipeline progress

       *EMA approved Jetrea, Bexsero, a new indication for Ilaris and a line
         extension for Exelon Patch; FDA approved new indications for Exjade
         and Zortress, a new formulation of tobramycin in a Podhaler device,
         and a pediatric extension of Glivec in US
       *Pipeline strengthened with FDA Breakthrough Therapy designation for
         LDK378 in lung cancer

  *Strong performance of growth products[2] and Emerging Growth Markets
    offset the impact of generic competition

       *Growth products including Gilenya, Afinitor, Tasigna, Galvus,
         Lucentis, Xolair, Arcapta Neohaler/Onbrez Breezhaler and Jakavi grew
         14% to USD 4.2 billion or 30% of Group net sales for the quarter.
         Pharmaceutical growth products grew 27% cc to USD 2.9 billion, 36% of
         net sales 
       *Emerging Growth Markets up 9% (cc); strong performance in China (+21%
         cc); Russia (+33% cc)
       *Impact of patent losses estimated at about USD 500 million, more than
         offset by growth products

  *Quality remediation continues to be a key priority; highlights for the
    quarter include: total of 58 health authority inspections, 10 of which
    were conducted by the FDA; the majority were assessed as good or
    satisfactory; inspection at Lincoln Consumer Health site completed;
    release of Sentinel from Lincoln; restructuring of Lincoln plant announced

  *Harry Kirsch named new CFO: Kirsch moves up to Group CFO from CFO
    Pharmaceuticals, taking over from Jon Symonds. Symonds will become
    advisor to the CEO until the end of the year, and to facilitate the
    transition. Kirsch's track record of improving productivity is well suited
    to meet challenges of next phase of growth

  *2013 Group outlook unchanged

Key figures

                 Q1 2013 Q1 2012[3] % change
                   USD m      USD m  USD  cc
Net sales         14 016     13 735    2   4
Operating income   2 896      2 736    6  10
Net income         2 422      2 269    7  13
EPS (USD)           0.98       0.93    5  12
Free cash flow     1 298      2 056  -37
Core
Operating income   3 714      3 607    3   6
Net income         3 248      3 035    7  10
EPS (USD)           1.32       1.25    6   9

[1]Core  results,  constant  currencies,  and  free  cash  flow  are  non-IFRS 
measures. An explanation of these non-IFRS measures and reconciliation  tables 
can be found beginning on page 32 of the Condensed Financial Report.
[2]Growth products  are defined  as products  launched in  2008 or  later,  or 
products with exclusivity until at least 2017 in key markets (EU, US,  Japan). 
Except Sandoz (products launched in last  24 months). See explanation on  page 
2.
[3]Restated by  an additional  USD  79 million  pre-tax Corporate  expense  to 
reflect the introduction of IAS  19 (revised) accounting standard on  employee 
benefits (see  explanations on  pages 27  and 48  of the  Condensed  Financial 
Report).
All product names appearing in italics are trademarks owned by or licensed  to 
Novartis Group Companies.

Basel, April 24, 2013 - Commenting on the results, Joseph Jimenez, CEO of
Novartis, said:
"Novartis delivered a solid quarter, with all divisions contributing to
growth. Significant expansion in our growth products helped to offset the
impact of patent expirations. Vaccines and Diagnostics performance improved,
and achieved a key approval for Bexsero in the EU while Consumer Health
returned to sales growth. Our focus on innovation continued to pay off, with
eight approvals in the EU and US, and an FDA Breakthrough Therapy designation
for LDK378 in lung cancer. I am pleased with our solid start to the year."

Commenting on the change in the CFO position, Joseph Jimenez said: "I want to
welcome Harry Kirsch to the position of CFO of Novartis. His deep knowledge of
Novartis pharmaceuticals operations and his productivity focus will now
benefit the full portfolio. I want to thank Jon Symonds for the enhancements
he brought to the business, our finance processes and organization. I am
pleased that Jon will continue to work as an advisor to me until the end of
the year, and to facilitate the transition."

GROUP REVIEW

First quarter

Group net sales increased as growth products[1] absorbed patent expiries
Group net sales increased 2% (+4% cc) to USD 14.0 billion in the first
quarter, with all divisions contributing to growth. Currency had a negative
impact of 2 percentage points.

Excluding the impact of patent expiries, underlying sales grew 7%. This was
fueled by growth products such as Gilenya, Afinitor, Tasigna, Galvus,
Lucentis, Xolair, Arcapta Neohaler/Onbrez Breezhaler and Jakavi, which
together contributed USD 4.2 billion or 30% of Group net sales, up 14% over
the prior-year period. Generics impacted sales by approximately USD 500
million, mainly due to Diovan. US sales continued to benefit from the delayed
entry of generic competition for Diovan monotherapy.

Group operating income increased 6% (+10% cc) to USD 2.9 billion. Operating
income margin increased by 0.8 percentage points to 20.7% of net sales. Core
operating income was up 3% (+6% cc) to USD 3.7 billion. Core operating income
margin in constant currencies increased by 0.6 percentage points, partly
offset by a negative currency impact of 0.4 percentage points, to 26.5% of net
sales. Excluding the impact of generic competition, core operating income grew
by 16% (cc). The adjustments made to Group operating income to arrive at core
operating income amounted to USD 818 million (2012: USD 871 million).

Group net income was USD 2.4 billion (+7%, +13% cc). EPS was up 5% (+12% cc)
to USD 0.98.

Group core net income increased 7% (+10% cc) to USD 3.2 billion. Core EPS
increased 6% (+9% cc) to USD 1.32.

Free cash flow reached USD 1.3 billion for the quarter compared to USD 2.1
billion in 2012.

Pharmaceuticals net sales were in line with previous year (0%, +3% cc) at USD
7.9 billion, with strong volume growth of 9 percentage points more than
offsetting generic competition (6 percentage points). Pricing was flat. Growth
products - including Gilenya, Afinitor, Tasigna, Galvus, Lucentis, Xolair,
Arcapta Neohaler/Onbrez Breezhaler and Jakavi - continued to drive sales
expansion and rejuvenate the portfolio.

Pharmaceuticals operating income increased 6% (+9% cc) to USD 2.5 billion,
primarily due to restructuring charges taken in 2012 related to the US General
Medicine business. Pharmaceuticals core operating income was USD 2.6 billion
(-1%, +2% cc). Core operating income margin in constant currencies decreased
by 0.2 percentage points. Currency had a negative impact of 0.1 percentage
points, resulting in a core operating income margin of 32.7% of net sales.

[1]In past quarters, we reported the net sales contribution and growth rate of
"recently launched products." As highlighted in January 2013, from the first
quarter of 2013, we moved to a new disclosure of "growth products," which
comprises products launched in 2008 or later, or products with exclusivity
until at least 2017 in key markets (EU, US, Japan) (except Sandoz, products
launched in last 24 months). In terms of net sales contribution in the first
quarter, the two measures are broadly similar.

Alcon delivered net sales of USD 2.6 billion (+1%, +3% cc), with steady growth
in Ophthalmic Pharmaceuticals (+5% cc) and Vision Care (+3% cc) compensating
for softer growth in Surgical (+2% cc). Surgical was impacted by a slowdown of
global cataract procedures and reduced sales growth of capital equipment. New
equipment sales weakened due to strong sales in the fourth quarter of 2012
coupled with a strong first quarter 2012 comparator. Equipment sales are
expected to remain soft ahead of a refresh of the portfolio later in the year.

Alcon operating income was up 13% (+24% cc) to USD 412 million driven by
revenue growth and continued productivity improvements and cost containment
measures. Core operating income increased by 5% (+8% cc) to USD 944 million.
Core operating income margin in constant currencies increased by 1.8
percentage points; currency had a negative impact of 0.5 percentage points,
resulting in a core operating income margin of 36.8% of net sales.

Sandoz net sales grew 6% (+7% cc) to USD 2.3 billion. Volume grew 12
percentage points, driven by strong double-digit sales growth in many European
and Asian markets, as well as biosimilars (USD 94 million, +22% cc). Price
erosion was 11 percentage points, driven by significantly higher prior-year
pricing on enoxaparin (generic Lovenox®).

Sandoz operating income decreased 16% (-15% cc) to USD 251 million, due to USD
79 million of provisions for legal matters. Core operating income was USD 431
million, up 13% (+14% cc) from the previous-year quarter. Core operating
income margin in constant currencies increased by 1.1 percentage points;
currency had no impact, resulting in a core operating income margin of 19.1%
of net sales.

Vaccines and Diagnostics net sales reached USD 327 million, up 9% (+10% cc)
over the previous-year quarter, due to bulk pediatric shipments, a strong
influenza late season in the US and pre-pandemic sales. Operating loss was
reduced to USD 157 million from USD 173 million in the 2012 period. Core
operating loss was USD 98 million compared to USD 118 million in the previous
year.

Consumer Health, which comprises OTC and Animal Health, returned to growth in
the first quarter, as net sales increased by 6% (+7% cc) to USD 987 million.
Operating income was USD 11 million, in line with the prior-year quarter. Core
operating income grew 85% (+85% cc) to USD 76 million. Core operating income
margin increased by 3.3 percentage points to 7.7% of net sales.

Executing on innovation, growth and productivity

The Novartis strategy is based on science-based innovation, focused on growing
segments of the healthcare industry, including pharmaceuticals, eye care,
generics, vaccines and diagnostics, over-the-counter medicines and animal
health. Execution of this strategy requires a consistent focus on innovation,
growth and productivity across our operations. In each of these areas, we made
significant progress in the first quarter, allowing us to keep our promise to
bring high-quality, innovative medicines to patients in need and provide
long-term value for our investors.

Innovation: Strong momentum with eight regulatory approvals in the EU and US

Novartis made significant progress on innovation in the first quarter, with
eight regulatory milestones in the EU and US. Key highlights are included
below.

New approvals and positive opinions

  *Jetrea approved in EU for vitreomacular traction and macular hole
    Jetrea (ocriplasmin), a recombinant form of human protein, received
    approval from the EMA as the first and only eye drug to treat
    vitreomacular traction (VMT), including when associated with macular hole.
    Launch is expected in the first European markets during the second
    quarter.

  *Bexsero received EU approval for use in all age groups including infants
    The EMA also approved Bexsero, our breakthrough meningococcal serogroup B
    (MenB) vaccine, making it the first vaccine for the prevention of this
    disease across Europe. First launch in Europe is expected in late 2013 or
    the first half of 2014.

  *Ilaris approved in EU for acute gouty arthritis
    llaris (canakinumab) was approved by the EMA as a treatment for patients
    with acute gouty arthritis who suffer frequent attacks and whose symptoms
    cannot or should not be managed with current treatment options.

  *Exjade approved by FDA for chronic iron overload in NTDT
    Exjade (deferasirox) received FDA approval for the treatment of chronic
    iron overload in patients 10 years of age and older with
    non-transfusion-dependent thalassemia (NTDT) syndromes.

  *Zortress approved in the US to prevent organ rejection in adult liver
    transplant patients
    The FDA approved Zortress (everolimus) to prevent organ rejection in adult
    liver transplant patients, making it the first immunosuppressant approved
    in the US for this use in over a decade.

  *FDA approved Glivec for pediatric patients
    The FDA approved Glivec (imatinib) for pediatric patients with
    newly-diagnosed Philadelphia chromosome-positive acute lymphoblastic
    leukemia (Ph+ ALL) in combination with chemotherapy.

  *TOBI Podhaler approved by FDA for cystic fibrosis patients with P.
    aeruginosa
    The FDA also approved TOBI Podhaler (tobramycin inhalation powder) for the
    management of cystic fibrosis patients with Pseudomonas aeruginosa
    bacteria in the lungs.

  *Line extension for Exelon Patch approved in the EU
    The EMA approved the 13.3 mg/24h (15cm²) Exelon Patch (rivastigmine) line
    extension for the symptomatic treatment of patients with
    mild-to-moderately severe Alzheimer's disease dementia.

Regulatory submissions and filings

  *FDA granted Breakthrough Therapy designation for LDK378 in lung cancer
    The FDA designated LDK378 as a Breakthrough Therapy for the treatment of
    anaplastic lymphoma kinase positive (ALK+) metastatic non-small cell lung
    cancer (NSCLC).

Results from important clinical trials

  *Positive data from first Phase III study of Xolair in patients with
    chronic hives
    Results from the Phase III study ASTERIA II showed that omalizumab,
    marketed as Xolair in more than 90 countries for the treatment of severe
    allergic asthma, provided effective treatment in patients with moderate to
    severe refractory chronic idiopathic urticaria (CIU), also known as
    chronic spontaneous urticaria (CSU). Regulatory filing is expected in the
    second half of 2013.

  *New analysis reinforced efficacy and safety of Gilenya in patients with
    relapsing MS
    In a new analysis of more than 3,600 patients from three large Phase III
    studies, Gilenya (fingolimod), the first oral disease modifying therapy
    approved to treat relapsing forms of multiple sclerosis (MS), showed a
    significant reduction in the rate of brain volume loss.

Growth: Strong performance of key growth products and Emerging Growth Markets

Key growth drivers in the first quarter included Gilenya, Afinitor, Tasigna,
Galvus, Lucentis, Xolair, Arcapta Neohaler/Onbrez Breezhaler and Jakavi.
Emerging Growth Markets (EGMs) - which comprise all markets except the US,
Canada, Western Europe, Australia, New Zealand and Japan - also performed
strongly, helping offset the impact of generic competition and support our
growth trajectory. Highlights from the first quarter are included below.

Key growth products

  *Gilenya (USD 421 million, +71% cc), our breakthrough MS treatment, grew
    strongly in the first quarter, as new data continued to reinforce its
    well-established safety and efficacy profile. Gilenya is now approved in
    72 countries, and it is estimated that it has been used to treat more than
    63,000 patients in clinical trials and the post-marketing setting.

  *Afinitor (USD 303 million, +114% cc) maintained strong growth across five
    approved indications in the US and EU.

  *Tasigna (USD 284 million, +39% cc) continued to increase its share of our
    chronic myeloid leukemia (CML) franchise to 26%, up from 21% a year ago.
    This second-generation targeted therapy for CML has been shown to achieve
    deeper molecular response than Glivec.

  *Galvus (USD 267 million, +40% cc), our oral type-2 diabetes medication,
    grew consistently well in both emerging and established markets.

  *Lucentis (USD 596 million, +7% cc), our anti-VEGF therapy licensed across
    three ocular indications, continued to show growth in the first quarter.
    Lucentis is facing new competition in several markets, including Japan,
    Australia and Germany, from aflibercept.

  *Xolair (USD 141 million, +29% cc), currently approved for treatment of
    allergic asthma, grew strongly in Europe, Japan, Canada and Latin America.
    A Phase III trial is progressing to support the use of omalizumab, the
    active ingredient in Xolair, in patients with chronic spontaneous
    urticaria, with regulatory filings planned in 2013.

  *Arcapta Neohaler/Onbrez Breezhaler (USD 43 million, +48% cc), a once-daily
    long-acting beta[2]-agonist for patients with chronic obstructive
    pulmonary disease, grew strongly worldwide.

  *Jakavi (USD 35 million), recently launched in markets ex-US for
    myelofibrosis, grew strongly due to high unmet need among patients with
    this life-threatening blood cancer, where it has the potential to be the
    new standard of care.

Emerging Growth Markets

  *Net sales in our Emerging Growth Markets grew 9% (cc) in the first
    quarter, contributing USD 3.5 billion or 25% to Group net sales. In China,
    net sales were up 21% (cc) in the first quarter. Russia net sales expanded
    33% (cc) in the quarter.

Productivity: Focus on efficiency in Procurement, Marketing & Sales and
manufacturing

Efficiency gains allow us to further improve profitability and support
reinvestment in the business, a critical aspect of our long-term strategy.
Ongoing productivity initiatives relate to procurement and resource allocation
across the portfolio, as well as our manufacturing network and supporting
infrastructure.

  *In Procurement, we continued to leverage our scale, implement global
    category management and create country Centers of Excellence in key
    markets. As a result of these efforts, we generated savings of
    approximately USD 250 million in the first quarter.

  *We continued to optimize our manufacturing footprint in the first quarter,
    bringing the total number of production sites that are being exited,
    restructured or divested to 18. We recorded exceptional charges related to
    production transfers, impairment charges and inventory write-offs of USD
    66 million in the first quarter. This includes amounts related to our
    Consumer Health manufacturing site at Lincoln, Nebraska and Alcon sites in
    Mexico City, Mexico and Des Plaines, Illinois, and brings the total
    charges to USD 466 million cumulatively since the program began in the
    fourth quarter of 2010.

In the first quarter, our productivity initiatives generated gross savings
that contributed approximately USD 600 million to operating income margin,
putting us on track to achieve our productivity target of 3% to 4% of net
sales in 2013.

Quality: Aggressive management of quality remediation

There were a total of 58 health authority inspections during the quarter, 10
of which were conducted by the FDA. The majority were assessed as good or
satisfactory.

The FDA re-inspected our Consumer Health manufacturing facility in Lincoln,
Nebraska and issued nine Form 483 observations. The majority of the
observations concerned the timeliness and completeness of handling consumer
complaints.There were no observations relating to the manufacturing
operations. Consequently, we started shipping newly validated Sentinel to our
customers in early April. We are continuing to aggressively remediate the
plant and have shared with the FDA the additional corrective actions we are
taking as well as our plan to simplify the Lincoln footprint, as described
below.

We have made the decision to restructure and simplify the Lincoln
manufacturing plant to focus long-term production on two product forms -
solids and powder - principally for Sentinel, Excedrin and Theraflu. This will
enable the site to focus on operational excellence, with minimal product
complexity. The reduction of complexity at the Lincoln facility will lead to a
reduction of approximately 300 positions or 40% of the total workforce at the
site in phases over the next two years. Impairment charges and provisions of
USD 51 million (out of an expected total of USD 100 million) have been
recognized in the first quarter.

As previously announced, to speed our return to the US market, we have engaged
third-party manufacturers to produce Excedrin Migraine, Lamisil, Triaminic and
Excedrin Extra Strength, which we resumed shipping in the fourth quarter of
2012. Benefiber will be the next re-launch (expected in the second quarter)
followed by Theraflu in North America later in the year.

Free cash flow

Free cash flow of USD 1.3 billion was USD 0.8 billion lower than in the prior
year, mainly due to higher tax payments and working capital requirements
compared to the first quarter of 2012.

Capital allocation and net debt

Strong cash flows and a sound capital structure have allowed Novartis to focus
on driving innovation, growth and productivity across its diversified
healthcare portfolio while keeping its double-A rating as a reflection of
financial strength. Retaining a good balance between attractive shareholder
returns, investment in the business and a strong capital structure will remain
a priority in the future.

During the first quarter of 2013, a net 30 million shares were issued as a
result of options exercised related to employee participation programs and
repurchases of employee shares, resulting in a cash inflow of USD 1.5 billion.
Novartis plans to mitigate the dilutive impact of these programs on an ongoing
basis and has already re-purchased 4.1 million shares (USD 281 million) on the
first trading line during the first quarter.

As of March 31, 2013, net debt stood at USD 14.9 billion, compared to USD 11.6
billion at December 31, 2012. The net increase of USD 3.3 billion was mainly
driven by a temporary increase in debt by USD 1.2 billion and a decrease in
liquidity by USD 2.1 billion. The 2012 dividend payment of USD 6.1 billion was
paid during the quarter.

Novartis was downgraded by one notch by Moody's in February 2013. The
long-term credit rating for the company continues to be double-A (Moody's Aa3;
Standard & Poor's AA-; Fitch AA).

Management changes

Harry Kirsch, 48, moves from CFO of the Pharmaceuticals Division to Group CFO
starting May 1, 2013. Kirsch, who joined Novartis in 2003 from the position of
CFO of Procter & Gamble's global pharmaceuticals business, has been recognized
for his ability to improve productivity, and for his leadership style.
Kirsch's execution skills have contributed to strong profit results, with
Pharmaceuticals' core operating income increasing, in constant currencies,
every quarter of 2011 and 2012, despite patent expirations. His financial
operating proficiency will help drive operational excellence across the whole
Novartis portfolio of businesses. After 17 years as a CFO, four at Novartis,
Symonds has decided to step back. The timing was right as the company is
entering its next growth phase and is on a new track. Symonds made a
significant impact on the performance of the business, improving the finance
function and laying the groundwork for standardization and simplification.
Symonds will serve as advisor to the CEO remaining until the end of the year,
and to facilitate the transition.

2013 Group outlook

Barring unforeseen events, 2013 Group outlook unchanged

Group net sales in 2013 are expected to be in line with 2012 in constant
currencies, after absorbing the impact of generic competition, which could
amount to as much as USD 3.5 billion. Excluding the impact of generic
competition, Group net sales would grow at least in mid-single digits in 2013.

Group core operating income in constant currencies is expected to decline in
2013 in mid-single digits as a result of generic competition and continued
investment in an unprecedented number of launches. Core operating income
(excluding patent expirations) is expected to grow ahead of underlying sales
in 2013.

During the first quarter, the US dollar strengthened against many currencies,
but principally against the yen. If March average exchange rates prevail for
the remainder of the year, there would be a negative impact of approximately
2% on sales and approximately 4% on operating income for the full year.

Summary Financial Performance

Group

                      Q1 2013 Q1 2012[1] % change
                        USD m      USD m  USD  cc
Net sales              14 016     13 735    2   4
Operating income        2 896      2 736    6  10
 As % of net sales      20.7       19.9
Core operating income   3 714      3 607    3   6
 As % of net sales      26.5       26.3

[1] Restated by an additional USD 79 million pre-tax Corporate expense to
reflect the introduction of IAS 19 (revised) accounting standard on employee
benefits (see explanations on pages 27 and 48 of the Condensed Financial
Report).

Pharmaceuticals

                      Q1 2013 Q1 2012 % change
                        USD m   USD m  USD  cc
Net sales               7 877   7 839    0   3
Operating income        2 539   2 402    6   9
 As % of net sales      32.2    30.6
Core operating income   2 573   2 589   -1   2
 As % of net sales      32.7    33.0

Alcon

                      Q1 2013 Q1 2012 % change
                        USD m   USD m  USD  cc
Net sales               2 566   2 541    1   3
Operating income          412     363   13  24
 As % of net sales      16.1    14.3
Core operating income     944     902    5   8
 As % of net sales      36.8    35.5

Sandoz

                      Q1 2013 Q1 2012 % change
                        USD m   USD m  USD  cc
Net sales               2 259   2 124    6   7
Operating income         251     298  -16 -15
 As % of net sales      11.1    14.0
Core operating income    431     382   13  14
 As % of net sales      19.1    18.0

Vaccines and Diagnostics

                    Q1 2013 Q1 2012 % change
                      USD m   USD m  USD  cc
Net sales               327     299    9  10
Operating loss         -157    -173   -9  -9
 As % of net sales   -48.0   -57.9
Core operating loss     -98    -118  -17 -17
 As % of net sales   -30.0   -39.5

Consumer Health

                      Q1 2013 Q1 2012 % change
                        USD m   USD m  USD  cc
Net sales                 987     932    6   7
Operating income           11      12   -8 -11
 As % of net sales       1.1     1.3
Core operating income      76      41   85  85
 As % of net sales       7.7     4.4

A full financial report with the information listed in the index below can be
found on our website at
http://www.novartis.com/investors/financial-results/quarterly-results-q1-2013.shtml.

Novartis Q1 2013 Condensed Financial Report - Supplementary Data

INDEX                                                                     Page
GROUP AND DIVISIONAL OPERATING PERFORMANCE Q1 2013
 Group                                                                  2
 Pharmaceuticals                                                        4
 Alcon                                                                  9
 Sandoz                                                                 11
 Vaccines and Diagnostics                                               12
 Consumer Health                                                        13
CASH FLOW AND GROUP BALANCE SHEET                                         14
INNOVATION REVIEW                                                         15
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 Condensed consolidated income statements                               22
 Condensed consolidated statements of comprehensive income              23
 Condensed consolidated balance sheets                                  24
 Condensed consolidated changes in equity                               25
 Condensed consolidated cash flow statements                            26
Notes to condensed consolidated financial statements, including update on 27
legal proceedings
SUPPLEMENTARY INFORMATION                                                 32
CORE RESULTS
 Reconciliation from IFRS to core results                               34
 Group                                                                  35
 Pharmaceuticals                                                        36
 Alcon                                                                  37
 Sandoz                                                                 38
 Vaccines and Diagnostics                                               39
 Consumer Health                                                        40
 Corporate                                                              41
ADDITIONAL INFORMATION
 Condensed consolidated changes in net debt / Share information         42
 Free cash flow                                                         43
 Net sales of top 20 Pharmaceuticals products                           44
 Pharmaceuticals sales by business franchise                            45
 Net sales by region                                                    46
 Currency translation rates/Income from associated companies            47
 Restatement information                                                48
DISCLAIMER                                                                49

Disclaimer
This press release contains forward-looking statements that can be identified
by terminology such as "commitment," "pipeline," "Breakthrough Therapy,"
"outlook," "expected," "strategy," "promise," "launch," "projected,"
"planned," "launched," "potential," "in the process," "target," "plan,"
"will," "plans," "could," "would," "launches," "underway," "may," "priority
review," "on track," or similar expressions, or by express or implied
discussions regarding potential new products, potential new indications for
existing products, or regarding potential future revenues from any such
products; potential outcomes of our efforts to improve the quality standards
at any or all of our manufacturing sites; or regarding potential future sales
or earnings of the Novartis Group or any of its divisions; or by discussions
of strategy, plans, expectations or intentions. You should not place undue
reliance on these statements. Such forward-looking statements reflect the
current views of the Group regarding future events, and involve known and
unknown risks, uncertainties and other factors that may cause actual results
to be materially different from any future results, performance or
achievements expressed or implied by such statements. There can be no
guarantee that any new products will be approved for sale in any market, or
that any new indications will be approved for any existing products in any
market, or that any approvals which are obtained will be obtained at any
particular time, or that any such products will achieve any particular revenue
levels. Nor can there be any guarantee that the Group will be successful in
its efforts to improve the quality standards at any or all of our
manufacturing sites, or that we will succeed in restoring or maintaining
production at any particular sites. Neither can there be any guarantee that
the Group, or any of its divisions, will achieve any particular financial
results. In particular, management's expectations could be affected by, among
other things, unexpected regulatory actions or delays or government regulation
generally; unexpected clinical trial results, including additional analyses of
existing clinical data or unexpected new clinical data; the Group's ability to
obtain or maintain patent or other proprietary intellectual property
protection, including the ultimate extent of the impact on the Group of the
loss of patent protection on key products which commenced last year and will
continue this year; unexpected product manufacturing and quality issues,
including the resolution of the Warning Letter issued to us with respect to
three Sandoz manufacturing facilities, and the completion of efforts to
restart production of certain products formerly produced at the Consumer
Health manufacturing facility at Lincoln, Nebraska, and the restructuring
efforts at that site; government, industry, and general public pricing
pressures; uncertainties regarding actual or potential legal proceedings,
including, among others, actual or potential product liability litigation,
litigation and investigations regarding sales and marketing practices,
shareholder litigation, government investigations and intellectual property
disputes; competition in general; uncertainties regarding the effects of the
ongoing global financial and economic crisis, including the financial troubles
in certain Eurozone countries; uncertainties regarding future global exchange
rates; uncertainties regarding future demand for our products; uncertainties
involved in the development of new healthcare products; the impact that the
foregoing factors could have on the values attributed to the Group's assets
and liabilities as recorded in the Group's consolidated balance sheet; and
other risks and factors referred to in Novartis AG's current Form 20-F on file
with the US Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described herein as
anticipated, believed, estimated or expected. Novartis is providing the
information in this press release 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.

About Novartis
Novartis provides innovative healthcare solutions that address the evolving
needs of patients and societies. Headquartered in Basel, Switzerland, Novartis
offers a diversified portfolio to best meet these needs: innovative medicines,
eye care, cost-saving generic pharmaceuticals, preventive vaccines and
diagnostic tools, over-the-counter and animal health products. Novartis is the
only global company with leading positions in these areas. In 2012, the Group
achieved net sales of USD 56.7 billion, while R&D throughout the Group
amounted to approximately USD 9.3 billion (USD 9.1 billion excluding
impairment and amortization charges). Novartis Group companies employ
approximately 129,000 full-time-equivalent associates and operate in more than
140 countries around the world. For more information, please visit
http://www.novartis.com.

Important dates

July 17, 2013    Second quarter results 2013
October 22, 2013 Third quarter results 2013


Please find full media release in English attached and on the following link:
http://hugin.info/134323/R/1695613/558043.pdf

Further language versions are available through the following links:

German version is available through the following link:
http://hugin.info/134323/R/1695615/558046.pdf

French version is available through the following link:
http://hugin.info/134323/R/1695614/558044.pdf

Media release (PDF)

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Source: Novartis International AG via Thomson Reuters ONE
HUG#1695613

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Novartis International AG
P.O. Box Basel Switzerland

WKN: 904278;ISIN: CH0012005267;
 
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