SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated April 11, 2002
Novartis AG
(Name of Registrant)
Lichtstrasse 35
4056 Basel
Switzerland
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(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F_
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Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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Enclosure:
1. Invitation for Novartis First Quarter Results 2002 - Conference Call
2. First Quarter 2002 Sales & Results Pre-Announcement: 2001 Figures
(Investor Relations, 9 April 2002)
Investor Relations Novartis International AG
CH-4002 Basel
Switzerland
Karen J Huebscher, PH.D.
[Novartis Logo] Tel +41 61 324 8433
Nafida Bendali
Tel +41 61 324 3514
Sabine Moravi, MBA
Tel + 41 61 324 8989
Fax + 41 61 324 8844
Silke Zentner
Tel + 41 61 324 8612
Francisco Bouzas
Tel + 41 61 324 2462
Fax + 41 61 324 8844
Internet Address:
http://www.novartis.com
INVITATION FOR
- "NOVARTIS FIRST QUARTER RESULTS 2002 - CONFERENCE CALL"
First Quarter Sales & Results 2002
Dear Investor
We are pleased to invite you to our first quarter results conference call.
Please see below the following dial-in numbers:
Date: Thursday, April 18, 2001
Time: Advisable: dial-in 10 minutes before
6.00 p.m. Switzerland
5.00 p.m. UK
12.00 p.m. New York
Phone numbers: +41 91 610 41 11 or "Free Phone" +800 2467 87 00 Europe/ROW
+1 800 860 24 42 USA
You may access the conference call as a live audio webcast on the Internet:
www.novartis.com/investors
Playback for 48 hrs after the call commences
Date: Thursday, April 18, 2002
Beginning: 9.00 p.m. (Switzerland)
8.00 p.m. (UK)
3.00 p.m. (New York)
Phone numbers: +41 91 610 25 00 Europe/ROW
+1 877 344 75 29 USA
Code: 705
[NOVARTIS LOGO]
First Quarter 2002
Sales & Results
Pre-Announcement:
2001 Figures
Investor Relations, 9 April 2002
Comments on Quarterly Reporting
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o As of first quarter 2002 Novartis will be reporting both Sales and Results
on a quarterly basis
o In addition, sectorial information will be more detailed: The performance
of Nutrition as well as OTC will be shown
o In the following slides please find the corresponding figures for the first
quarter 2001 as a baseline to work from
[NOVARTIS LOGO]
Sector Sales in Q1 2001
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US Rest of World Total
CHF millions CHF millions CHF millions
Pharmaceuticals 1,793 2,745 4,538
Generics 156 372 528
OTC 175 426 601(1)
Healthcare 2,124 3,543 5,667
CIBA Vision 179 244 423
Nutrition 498 396 894(2)
Animal Health 75 165 240
Group 2,876 4,348 7,224(3)
1-3 Adjustments for changes in accounting policy on sales incentives and
discounts to retailers, see notes on next slide
[NOVARTIS LOGO]
Notes on Adjustments
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The following adjustments were made as a result of changes we have
implemented in our IAS financial statements in order to conform with US GAAP
rules EITF 00-14 and EITF 00-25 whereby incentives to retailers must be
treated as a reduction in Revenue rather than as a Marketing & Distribution
expense.
1) CHF 601 m Originally reported OTC sales of CHF 631 m reduced by
CHF 30 m as a result of these changes
2) CHF 894 m Originally reported Nutrition sales of CHF 960 m reduced by
CHF 66 m as a result of these changes
3) CHF 7,224 m Originally reported Group sales of CHF 7,320 m reduced by
CHF 96 m as a result of these changes
[NOVARTIS LOGO]
Sector Operating Income in Q1 2001
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Total % of
Sales o Low operating margin with
CHF CIBA Vision as a result of
millions integration costs
associated with the
Group 1,545 21.4 acquisition of Wesley
Jessen (CHF 28 m).
Pharmaceuticals 1,244 27.4 In 2002 no further
integration costs are
Generics 65 12.3 expected to occur.
OTC 58 9.7 o In Animal Health operating
margins were solid in Q1
Healthcare 1,367 24.1 2001 as the full impact of
competitive pressures in
CIBA Vision 6 1.4 the higher margin companion
animal business and the
Nutrition 108 12.1 impact of foot and mouth
disease in Europe was felt
Animal Health 44 18.3 later on in the year.
Corporate Income 20 --
[NOVARTIS LOGO]
Q1 2001 Consolidated Income Statement
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Total
CHF
millions
Total sales 7,224
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Cost of goods sold -1,874
Gross profit 5,350
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Marketing & Distribution -2,499
Research & Development -929
General & Administration -377
Operating income 1,545
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Income from associated companies 31
Financial income, net 217
Income before taxes and minority interests 1,793
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Taxes -305
Minority interests -3
Net income 1,485
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[NOVARTIS LOGO]
Appendix
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Quarterly Breakdown
from Q1 to Q4 2001
[NOVARTIS LOGO]
Quarterly Breakdown of Operating Income By Sector 2001
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Q1 Q2 1H Q3 Q4 Full Year
CHF CHF CHF CHF CHF CHF
millions millions millions millions millions millions
Group 7,224 8,043 15,267 8,117 8,259 31,643
Pharmaceuticals 4,538 5,151 9,689 5,207 5,285 20,181
Generics 528 593 1,121 636 676 2,433
OTC 601 613 1,214 652 672 2,538
Healthcare 5,667 6,357 12,024 6,495 6,633 25,152
CIBA Vision 423 458 881 485 421 1,787
Nutrition 894 978 1,872 912 958 3,742
Animal Health 240 250 490 225 247 962
[NOVARTIS LOGO]
Sales Adjustments(1) For 2001
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Q1 Q2 1H Q3 Q4 Full Year
CHF CHF CHF CHF CHF CHF
millions millions millions millions millions millions
Group -96 -101 -197 -103 -95 -395
OTC -30 -29 -59 -29 -41 -129
Nutrition -66 -72 -138 -74 -54 -266
1 adjustments for changes in accounting policy on sales incentives and
discounts to retailers
[NOVARTIS LOGO]
Quarterly Breakdown of Operating Income By Sector 2001
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Q1 Q2 1H Q3 Q4 Full Year
CHF CHF CHF CHF CHF CHF
millions millions millions millions millions millions
Group 1,545 1,935 3,480 1,873 1,924 7,277
Pharmaceuticals 1,244 1,451 2,695 1,436 1,546 5,677
Generics 65 76 141 68 72 281
OTC 58 94 152 126 174 452
Healthcare 1,367 1,621 2,988 1,630 1,792 6,410
CIBA Vision 6 81 87 69 18 174
Nutrition 108 125 233 113 122 468
Animal Health 44 22 66 30 42 138
Corporate income/expense 20 86 106 31 -50 87
[NOVARTIS LOGO]
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2001 Quarterly Consolidated Income Statement
Q1 Q2 1H2001 Q3 Q4 FY2001
CHF CHF CHF CHF CHF CHF
millions millions millions millions millions millions
Total sales 7,224 8,043 15,267 8,117 8,259 31,643
Cost of goods sold -1,874 -1,930 -3,804 -2,000 -2,082 -7,886
Gross profit 5,350 6,113 11,463 6,117 6,177 23,757
Marketing&Distribution -2,499 -2,766 -5,265 -2,689 -2,749 -10,703
Research&Development -929 -1,081 -2,010 -1,057 -1,122 -4,189
General&Administration -377 -331 -708 -498 -382 -1,588
Operating income 1,545 1,935 3,480 1,873 1,924 7,277
Income from associated companies 31 46 77 23 39 139
Financial income, net 217 735 952 197 -82 1,067
Income before taxes and minority interests 1,793 2,716 4,509 2,093 1,881 8,483
Taxes -305 -463 -768 -399 -273 -1,440
Minority interests -3 -9 -12 -11 4 -19
Net income 1,485 2,244 3,729 1,683 1,612 7,024
[NOVARTIS LOGO]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Novartis AG
Date: April 11, 2002 By: /s/ RAYMUND BREU
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Name: Raymund Breu
Title: Chief Financial Officer