Richard Francis – Division Head, Sandoz

Meet Novartis Management

June 17-18, 2015

Sandoz Division

Disclaimer

This presentation contains forward-looking statements that can be identified by words such as “momentum,” “progress,” “building,” “focused,” “pipeline,” “focusing,” “focus,” “expect,” “target,” “on track,” “strategy,” “accelerating,” “well positioned,” “ongoing,” “planned,” “aim,” “being investigated,” “continuing,” “potential,” “preparing,” “launch,” “underway,” “working,” “committed,” “potentially,” “developing,” “initiated,” “continued,” “development,” “plans,” “evolving,” “will,” “expects,” “continue,” “expected,” “progressing,” “priorities,” or similar terms, 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 shareholder returns or credit ratings; or regarding the potential completion of the announced transaction with CSL, or regarding the potential financial or other impact on Novartis of the transactions with GSK, Lilly or CSL, or regarding any potential strategic benefits, synergies or opportunities as a result of these transactions; or regarding potential future sales or earnings of the Novartis Group or its divisions and associated companies; or by discussions of strategy, plans, expectations or intentions. You should not place undue reliance on these statements. 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. 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 announced transaction with CSL will be completed in the expected form or within the expected time frame or at all. Neither can there be any guarantee that Novartis will be able to realize any of the potential strategic benefits, synergies or opportunities as a result of the transactions with GSK, Lilly or CSL. Neither can there be any guarantee that the Novartis Group or any of its divisions or associated companies will achieve any particular financial results in the future. Nor can there be any guarantee that shareholders will achieve any particular level of shareholder returns. Neither can there be any guarantee that the Novartis Group, or any of its divisions, will be commercially successful in the future, or achieve any particular credit rating. In particular, management’s expectations could be affected by, among other things, unexpected regulatory actions or delays or government regulation generally, including an unexpected failure to obtain necessary government approvals for the announced transaction with CSL, or unexpected delays in obtaining such approvals; the potential that the strategic benefits, synergies or opportunities expected from the transactions with GSK, Lilly or CSL may not be realized or may take longer to realize than expected; the inherent uncertainties involved in predicting shareholder returns or credit ratings; the uncertainties inherent in research and development, including unexpected clinical trial results and additional analysis of existing clinical data; the Company’s ability to obtain or maintain proprietary intellectual property protection; unexpected manufacturing or quality issues; global trends toward health care cost containment, including ongoing 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, government investigations and intellectual property disputes; general economic and industry conditions, including uncertainties regarding the effects of the persistently weak economic and financial environment in many countries; uncertainties regarding future global exchange rates; uncertainties regarding future demand for our products; uncertainties involved in the development of new healthcare products; uncertainties regarding potential significant breaches of data security or disruptions of the Company’s information technology systems; 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 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.

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 2

Sandoz is a full-service generics provider, well positioned within the Novartis enterprise

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Our Mission: We will be the main provider of

high-quality, affordable medicines, helping

secure long-term access to healthcare for

people around the world

Pharmaceuticals

Alcon

Sandoz

NIBR1

NBS2

26,000+ 160+ >1100

Employees

worldwide

Countries in which

Sandoz products

are sold

Large portfolio

of compounds

1 Novartis Institutes for BioMedical Research 2 Novartis Business Services

Sandoz is a global leader in generics

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 4

1 Pro forma by including all acquired companies; figures reflect sales for generics and OTC only, including API and excluding originator (e.g. Copaxone®) and proprietary business (e.g. Women’s Health)

Source: Individual company annual and quarterly reports; FactSet. Note: All trademarks, logos and pictures are the property of the respective owner

Top generics companies, 2014 sales1

USD millions

1,739

2,254

2,365

2,395

2,496

6,459

6,747

9,562

10,810

Sandoz achieved solid performance in 2014 and we are off to a strong start in 2015

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 5

Q1 2015 Results

USD m

+9%

+17%

NET

SALES

CORE

OPERATING

INCOME

2,237

406

Variance (cc)1

vs. Q1

2014

FY 2014 Results

USD m

NET

SALES

CORE

OPERATING

INCOME

+7%

+7%

9,562

1,571

Variance (cc)1

vs. FY

2013

1 Constant currencies (cc) and core results are non-IFRS measures. See page 42 of the Novartis AG Q1 Condensed Financial Report

Sandoz is focused on 6 key priorities to drive performance

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 6

Geographic

Focus

Portfolio

Priorities

Biosimilars Tech Ops

& Quality

D&R1 and

BD&L Patients,

People,

Collaboration

Sandoz 6 Priorities

1 Development and Registration

Geographic focus: Targeted segmentation within expansive global footprint

Sandoz’s geographic

footprint is expansive.

Within this vast network, we

have identified geographic

segmentations to secure

short-, mid- and long-term

growth

2 critical segments:

Priority Focus markets Pillars of our business driving a significant part of our existing and future business, e.g. US, Germany

Priority Growth markets Markets where we expect to see significant absolute growth top and bottom line for the future, e.g. Brazil, China

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Geographic

Focus

Distributor model

Representative office

Sandoz office

Great start to the year across all major commercial regions

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Commercial regions

Q1 2015 net sales growth vs. PY (% cc)

1615

7

4

13

Latin America Asia Pacific2 Central

and

Eastern Europe

Western

Europe, Middle

East & Africa1

US

8

1 Including Germany 2 Including Japan

Geographic

Focus

Priority Focus markets: Strong US performance, with growth outpacing competition

Key Facts

#1

TRx growth vs. PY,

% MAT March 2

5.3

-6.2

16.9

-7.7

-3.4

TRx market

share, %2

First FDA approved

biosimilar under new

regulatory pathway (Zarxio™)

+13% Strong Q1 cc growth vs. PY

12.8

9.1

7.2

6.5

5.9

Innovative businesses

1 Copaxone® is a registered trademark of Teva Pharmaceutical Industries Ltd 2 Source: IMS NPA TRx – MAT Mar 2015, Generics only. MAT: Moving Annual Total

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 9

Received approval for the

fully substitutable Gx of

Copaxone®1 20mg

Glatopa™

Geographic

Focus

Priority Focus markets: Germany returned to growth, while Russia continues to hold strong

Germany

Russia

#1 6 +10%

#1 (Hexal/

Sandoz)

and #2

(1A Pharma)

Local

manufacturing

sites1

#2 Neva

Plant2 +13%

#2 in Russian

Gx market

Local

manufacturing

capabilities

Return to

growth in Q1

(cc), +5% Q4

2014 growth

Strong Q1

growth (cc),

+4% Q4

2014 growth

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 10

Geographic

Focus

1 Discussions have been initiated with Works Councils at Gerlingen and Frankfurt, Germany sites about plans to close down these sites 2 Expected to become operative in 2017

Priority Growth markets: Strong growth in key emerging markets

Select Priority Growth markets

Q1 2015 net sales growth vs. PY (% cc)

14

28

42

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 11

Geographic

Focus

RESPIRATORY

BIOSIMILARS

Sandoz FY

2014 sales

$514 m 5

Molecules in

Phase III /

Registration

+19%

Q1 cc growth

vs. PY

Portfolio priorities: Continue to fuel further growth through growth drivers

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 12

ANTI INFECTIVES

Sandoz FY

2014 sales1

$1.5 bn #1

Gx market

leader by

volume

#3

Overall global

market

GLATOPA™

Region Growth

Drivers

Dermatology Ophthalmics Pain

Portfolio

Priorities

1 Including retail business

San

do

z G

row

th D

rivers

Inhalers

Patches/

transdermals/

thin films

Innovative

solid

formulations

Implants

Biosimilars

API Cytotoxics

Hormones

Lyophilization

Injectables Ophthalmics

Dermatology

Broad

portfolio

Projects in

development >1,100 >800

D&R: Strong pipeline and a broad range of differentiated development capabilities

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D&R and

BD&L

Cost

Service

Geography

Technology Production

sites in network 451

2011 Warning Letter

lifted on North

American sites

WL

Lifted

Positive progress

FDA inspections

from Jan 2014 to Q1

2015

8

Tech Ops & Quality: Focusing on key sites while continuously strengthening Quality

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 14

1 Continuous streamlining of Sandoz manufacturing network with discussions initiated with Works Councils at Gerlingen and Frankfurt, Germany sites

about plans to close down these sites

Tech Ops

& Quality

Biosimilars: Global leader, achieving milestone FDA approval for Zarxio™

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 15

Leading brands2

#1

#1

#1

Strong pipeline –

anticipating 10 filings

within next 3 years

Phase III / Registration

Significant milestone achieved: Approval for the first ever biosimilar under the new

pathway in the US (Zarxio™)

#1

Leading company globally1

USD 514 m sales

generated in 2014

+19% cc growth in Q1 vs. PY

Biosimilars

1 In the combined regions of North America, Europe, Japan and Australia 2 2014 global biosimilars position in their categories. Worldwide ranking is based on volume market share

Biosimilar stakeholder environment expected to continue to evolve

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Current situation Key remaining challenges

Increasing awareness

Increased understanding of

health economic value of

biosimilars

Labeling: “generic like”

Extrapolation possible

Ambiguities of new law

Requirements for interchangeability

Naming protocols

Guidelines published Q1

2015

Market policies continue to evolve

Lack of familiarity with concept of

extrapolation

Clear revised guidelines

Local Phase III required

File IND after EU/US approval

Stakeholder

Reg

ula

tors

Patients &

physicians

Governments &

payors

Biosimilars

Sandoz is well positioned to compete in different market settings

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 17

Market

model

Physician-driven retail market Contract based hospital/clinic market

Payors influence drug use

Physician decides on drug class,

brand, biosimilar use

Retail pharmacist

dispenses prescribed drug

Patient self administers drug

Buying group or regional payor

Drug board decides formulary listings

Hospital or Clinic

Physician decides within formulary

listings

Physician / nurse administers drug

Hospital pharmacist / outpatient clinic

dispenses prepared drug

Influence Decide Limited impact

Illustrative

Biosimilars

Glatopa™ approval paves the way for further growth in US and strengthens Sandoz differentiated portfolio

First FDA-approved substitutable generic Copaxone® (glatiramer acetate injection) once daily 20mg1

Sandoz committed to providing patients with comparable product offering including support services

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 18

With Glatopa your

routine stays

routine.

Coming Soon

1 Copaxone® is a registered trademark of Teva Pharmaceutical Industries Ltd.

Sandoz is a full-service generics provider with #1 positions in biosimilars1, anti-infectives, ophthalmics, transplant/immunosuppressants

We are driving the business in-line with 6 key priorities to ensure growth with margin expansion, including renewed geographic and portfolio focus areas

Sandoz has a broad range of development capabilities and is pushing forward on new differentiated generics

We are streamlining our manufacturing footprint to optimize and gain efficiencies

Sandoz has an unwavering commitment to quality and has made great progress

Sandoz is the industry leader in biosimilars, paving the way forward with the first ever biosimilar approval under the new regulatory pathway in the US

Concluding takeaways

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 19

1 In the combined regions of North America, Europe, Japan and Australia

Appendix

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 20

Communications Steffen Kurzawa

Human Resources

(Vacant)

Legal

Shannon Klinger

Finance

Tobias Hestler

Sandoz is led by a highly experienced global leadership team

| Meet Novartis Management | June 17-18, 2015 | Investor Presentation 21

Global Head of Sandoz

Richard Francis

Quality Assurance

Andreas Brutsche

Strategic Planning

Sylke Hassel

Technical Operations

Jeff Rope

Biopharma &

Oncology Injectables

Carol Lynch

This chart indicates the functional reporting relationship of the respective leadership team.

The members‘ actual reporting is within the companies that employ them.

Latin America Francisco Ballester

North America Peter Goldschmidt

Western Europe, Middle East & Africa Nick Haggar

Functions Commercial Operations

Product

Development

Josef Egerbacher

Anti-Infectives

Rex Clements

Asia Pacific Paul Geymayer

Central & Eastern Europe Francesco Balestrieri

Commercial Strategy

Isabel Afonso