UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549_________________

FORM6-K_________________

REPORTOFFOREIGNPRIVATEISSUERPURSUANTTORULE13a-16OR15d-16UNDERTHE

SECURITIESEXCHANGEACTOF1934

August20,2019

CommissionFileNumber:001-31269

_________________

ALCONINC.(RegistrantName)

ChemindeBlandonnet81214Vernier,Geneva,Switzerland(Addressofprincipalexecutiveoffice)

_________________

IndicatebycheckmarkwhethertheregistrantfilesorwillfileannualreportsundercoverofForm20‑ForForm40-F:Form20-FxForm40-F

IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(1):

IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(7):

ExhibitIndex

ExhibitNumber   Description     

99.1   PressreleaseissuedbyAlconInc.datedAugust20,2019titled“AlconReportsSecondQuarterandFirstHalf2019Results”99.2   AlconInc.CondensedConsolidatedInterimFinancialReport101.SCH   InlineXBRLTaxonomyExtensionSchema101.CAL   InlineXBRLTaxonomyExtensionCalculation101.DEF   InlineXBRLTaxonomyExtensionDefinition101.LAB   InlineXBRLTaxonomyExtensionLabel101.PRE   InlineXBRLTaxonomyExtensionPresentation     

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SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

      ALCONINC.         

Date: August20,2019   By: /s/TimothyC.Stonesifer      Name:TimothyC.Stonesifer      Title:AuthorizedRepresentative         

         

         

Date: August20,2019   By: /s/RoyceBedward      Name:RoyceBedward      Title:AuthorizedRepresentative         

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AlconReportsSecondQuarterandFirstHalf2019Results• Secondquartersalesof$1.9billion,anincreaseof2%,or5%constantcurrency(cc)• AnnouncedthelaunchofPRECISION1,anewdailySiHylensdesignedforthemainstreammarket• Secondquartermid-singledigitgrowthinallproductcategories(cc)• Reiteratedfullyearoutlook

Geneva,August20,2019-Alcon(SIX/NYSE:ALC),thegloballeaderineyecare,reporteditsfinancialresultsforthesecondquarterandfirsthalfendedJune30,2019.

Secondquarterandfirsthalf2019keyfigures

  Threemonthsended Sixmonthsended  June30,2019 June30,2018 June30,2019 June30,2018Netsales(inmillion$) 1,863 1,819 3,640 3,598Operatingmargin(%) (2.8)% 2.1% (2.8)% 3.1%Coreoperatingmargin(%)(1) 16.6% 17.2% 17.1% 18.2%EPS($) (0.80) 0.03 (1.02) 0.11CoredilutedEPS($)(1) 0.47 0.52 0.98 1.10

Forthesecondquarterof2019,worldwidesaleswere$1.9billion,anincreaseof2%onareportedbasisandanincreaseof5%onaconstantcurrencybasis(2),ascomparedtothesamequarterofthepreviousyear.Secondquarter2019dilutedlossespersharewere$0.80andcoredilutedearningspersharewere$0.47.

“Our second quarter results demonstrate that we are solidly executing our growth drivers while successfully standing Alcon upas an independent company,” said David Endicott, Alcon’s Chief Executive Officer. “We maintained strong Surgicalperformance, driven by new product innovation in both implantables and consumables and demand for surgical equipment. Wealso delivered improvements in Vision Care, driven by double digit growth of our DAILIES TOTAL1 ®globally, as well as solidsales execution in the U.S."

Mr. Endicott continued, "PRECISION1®, our newest daily SiHy lens, is expected to broaden our contact lens portfolio andenhance our competitive offerings. We’re investing in a critical manufacturing platform that we believe will deliver one of ourmost exciting U.S. launches and position our business for continued growth and expansion."

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ToviewtheseparatepressreleaseonthelaunchofPRECISION1,clickon:https://www.alcon.com/media-release/alcon-launch-precision1-daily-disposable-contact-lenses-it-continues-deliver-vision

SecondQuarterandFirstHalf2019ResultsWorldwidesalesforthesecondquarterwere$1.9billion, anincreaseof2%,or5%onaconstantcurrencybasis,comparedtothesecondquarterof2018.SalesgrowthwasdrivenbytheCompany'sfourkeygrowthplatformswithintheSurgicalandVisionCaresegments:AT-IOLs,Vitreoretinal,DAILIESTOTAL1andSYSTANEComplete®.ForthefirstsixmonthsendedJune30,2019,worldwidesaleswere$3.6billion,up1%,or5%onaconstantcurrencybasis,comparedtothefirstsixmonthsendedJune30,2018.

Thefollowingtablehighlightsnetsalesbysegmentforthesecondquarterandfirsthalfof2019:

  Threemonthsended Change%   Sixmonthsended Change%($millionsunlessindicatedotherwise) June30,2019 June30,2018 $ cc   June30,2019 June30,2018 $ cc                  Surgical   Implantables 300 298 1 4   585 577 1 6Consumables 588 578 2 5   1,139 1,119 2 6Equipment/other 163 154 6 7   327 311 5 7TotalSurgical 1,051 1,030 2 5   2,051 2,007 2 6VisionCare                  Contactlenses 493 478 3 6   991 987 — 4Ocularhealth 319 311 3 5   598 604 (1) 2TotalVisionCare 812 789 3 6   1,589 1,591 — 3Netsalestothirdparties 1,863 1,819 2 5   3,640 3,598 1 5

Surgical growth continuesSurgicalnetsalesof$1.1billion,whichincludeimplantables,consumablesandequipment/other,increased2%,or5%onaconstantcurrencybasis,comparedtothesecondquarterof2018.Allcategoriesperformedwell,postingmid-singledigitgrowth.Strong international demand for PANOPTIX ® and monofocals, pull-through of dedicated consumables, strong cataractequipmentandservicerevenueweretheprimarydriversofgrowth.Year-to-date,Surgicalnetsalesincreased2%,or6%onaconstantcurrencybasis,comparedtothefirstsixmonthsendedJune30,2018.

Vision Care shows steady growthVision Care net sales of $0.8 billion , which include contact lenses and ocular health, increased3% , or6%on a constantcurrency basis compared to the second quarter of 2018. Sales of DAILIES TOTAL1 andSYSTANE Complete continued toachieve double-digit gains during the quarter. Sales from the rest of the contact lens portfolio improved due to new productenhancements,betterproductflowandsalesexecution.Year-to-daterevenueswerecomparabletothefirstsixmonthsoflastyearandincreased3%onaconstantcurrencybasis.

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Operating income/lossSecondquarter2019operatinglosswas$53million,whichincludeschargesof$258millionfromtheamortizationofcertainintangibleassetsand$78millionof separationcosts. Excludingtheseandotheradjustments, secondquartercoreoperatingincomewas$310million . Secondquartercoreoperatingmarginof16.6%includesanunfavorableimpactof90basispointsfromforeignexchange,comparedtothefirstthreemonthsendedJune30,2018.

Operating loss for the first six months of the year was $101 million , which includes charges of $ 513 million from theamortization of certain intangible assets, $ 78million of separation costs and $72 million of spin-readiness costs. Excludingtheseandotheradjustments,firsthalfoperatingincomewas$624million.Coreoperatingmarginforthefirsthalfoftheyearof17.1%includesanunfavorableimpactof100basispointsfromforeignexchange,comparedtothefirstsixmonthsendedJune30,2018.

Diluted earnings per share (EPS)Secondquarter2019dilutedlossespersharewere$0.80,whichincludes$301million , or$0.61pershare,innon-cashtaxexpense resulting from Swiss tax reform. On June 30, 2019, Swiss voters approved the Swiss Tax Reform and Old AgeInsurancefinancingbillwhichresultedinthere-measurementoftheCompany’sSwissdeferredtaxassetsandliabilities.

Coredilutedearningspersharewere$0.47forthesecondquarter,whichwasimpactedby$0.06persharefromincrementalinterestexpenserelatedtoborrowingsassociatedwiththespin-off.Firsthalf2019dilutedlossespersharewere$1.02,including$0.61pershareinnon-cashtaxexpenseresultingfromSwisstaxreformandotheradjustments.Coredilutedearningswere$0.98pershareforthefirsthalfof2019.-cash impact from Swiss tax reform is core-adjustedBalancesheethighlightsThe Company ended the second quarter with a cash position of $ 721 million . Following the addition of $3.5 billion ofborrowingsatthespin-off,theCompanyendedthesecondquarterwithanetdebt(3)positionof$2.8billion.

2019FinancialOutlookBasedonsolidperformanceyear-to-date,theCompanyreiterateditsfull year2019guidanceprovidedduringthefirst quartertrading update on May 15, 2019. The Company continues to expect worldwide net sales growth for the full year 2019 to bebetween3%and5%onaconstantcurrencybasis,coreoperatingmargintobeintherangeof17%to18%,andcoreeffectivetaxrate(4)tobeintherangeof17%to19%.

WebcastandConferenceCallInstructionsTheCompanywillhostaconferencecallonAugust21at2:00p.m.CentralEuropeanSummerTime/8a.m.EasternTimetodiscuss its second quarter 2019 earnings results. The webcast can be accessed online through Alcon's Investor Relationswebsite, investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available onlinewithin24hoursaftertheevent.

TheCompany'sinterimfinancial report andsupplemental presentationmaterialscanbefoundonlinethroughAlcon'sInvestorRelations website, https://investor.alcon.com/financials/quarterly-results/, at the beginning of the conference, or by clicking onthelink(https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2019/Alcons-Second-Quarter-2019-Earnings-Conference/default.aspx).

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Footnotes(pages1-3)

1Coreresults,suchascoreoperatingmarginandcoreEPS,arenon-IFRSmeasures.Foradditionalinformation,includingareconciliationofsuchcore results to the most directly comparable measures presented in accordance with IFRS, see the explanation of non-IFRS measures andreconciliationtablesinthe'Non-IFRSmeasuresasdefinedbytheCompany'and'FinancialTables'sections.

2Constantcurrency(cc)isanon-IFRSmeasure.Growthinconstantcurrency(cc)iscalculatedbytranslatingthecurrentyear’sforeigncurrencyitemsintoU.S.dollarsusingaverageexchangeratesfromtheprioryearandcomparingthemtoprioryearvaluesinU.S.dollars.Anexplanationofnon-IFRSmeasurescanbefoundinthe'Non-IFRSmeasuresasdefinedbytheCompany'section.

3Net (debt)/liquidity is a non-IFRS measure. For additional information regarding net (debt)/liquidity, which is a non-IFRS measure, see theexplanationofnon-IFRSmeasuresandreconciliationtablesinthe'Non-IFRSmeasuresasdefinedbytheCompany'and'FinancialTables'sections.

4Core effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. For additional information, see theexplanationregardingreconciliationofforward-lookingguidancelaterinthispressrelease.

4

CautionaryNoteRegardingForward-LookingStatements

Thispressreleasecontains“forward-lookingstatements” withinthemeaningof thesafeharborprovisionsof theUnitedStatesPrivateSecuritiesLitigationReformActof1995.Forward-lookingstatementscanbeidentifiedbywordssuchas:“anticipate,”“intend,”“commitment,”“lookforward,”“maintain,”“plan,”“goal,”“seek,”“believe,”“project,”“estimate,”“expect,”“strategy,”“future,”“likely,”“may,”“should,”“will”andsimilarreferencestofutureperiods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Alcon’s currentbeliefs, expectations and assumptions regarding the future of its business, future plans and strategies, and other future conditions. Becauseforward-lookingstatementsrelatetothefuture,theyaresubjecttoinherentuncertaintiesandrisksthataredifficulttopredict.Suchforward-lookingstatementsaresubjecttovariousrisksanduncertaintiesfacingAlcon,including:thecommercialsuccessofitsproductsanditsabilitytomaintainand strengthen its position in its markets; the success of its research and development efforts; uncertainties regarding the success of Alcon’sseparation and spin-off from Novartis; pricing pressure from changes in third party payor coverage and reimbursement methodologies; globaleconomic, financial, legal, tax, political, and social change; ongoing industry consolidation; its ability to maintain relationships in the healthcareindustry;changesininventorylevelsorbuyingpatternsofitscustomers;itsrelianceonsoleorlimitedsourcesofsupply;itsrelianceonoutsourcingkeybusinessfunctions;itsabilitytoprotectitsintellectualproperty;theimpactonunauthorizedimportationofitsproductsfromcountrieswithlowerprices to countries with higher prices; its success in completing and integrating strategic acquisitions; the effects of litigation, including productliability lawsuits; its ability to comply with all laws to which it may be subject; effect of product recalls or voluntary market withdrawals, includingCyPass; data breaches; the implementation of its enterprise resource planning system; its ability to attract and retain qualified personnel; thesufficiencyofitsinsurancecoverage;theaccuracyofitsaccountingestimatesandassumptions,includingpensionplanobligationsandthecarryingvalue of intangible assets; the ability to obtain regulatory clearance and approval of its products as well as compliance with any post-approvalobligations;legislativeandregulatoryreform;theabilityofAlconPharmaceuticalsLtd.tocomplywithitsinvestmenttaxincentiveagreementwiththeSwissStateSecretariatforEconomicAffairsinSwitzerlandandtheCantonofFribourg,Switzerland;abilitytoserviceitsdebtobligations;theneedforadditionalfinancing;itsabilitytooperateasastand-alonecompany;whetherthetransitionalservicesNovartishasagreedtoprovideAlconaresufficient;theimpactofthespin-offfromNovartisonAlcon’sshareholderbase;theabilitytodeclareandpaydividends;andtheeffectofmaintainingor losing its foreign private issuer status under U.S. securities laws. Additional factors are discussed in Alcon’s filings with the United StatesSecuritiesandExchangeCommission,includingitsForm20-F.Shouldoneormoreoftheseuncertaintiesorrisksmaterialize,orshouldunderlyingassumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-lookingstatements.

Forward-lookingstatementsinthispressreleasespeakonlyasofthedateofitsfiling,andAlconassumesnoobligationtoupdateforward-lookingstatementsasaresultofnewinformation,futureeventsorotherwise.

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Non-IFRSmeasuresasdefinedbytheCompany

Alconusescertainnon-IFRSmetricswhenmeasuringperformance,includingwhenmeasuringcurrentperiodresultsagainstpriorperiods,includingcoreresults,constantcurrencies,net(debt)/liquidity,andfreecashflow.

Becauseoftheirnon-standardizeddefinitions,thenon-IFRSmeasures(unlikeIFRSmeasures)maynotbecomparabletothecalculationofsimilarmeasuresofothercompanies.Thesenon-IFRSmeasuresarepresentedsolelytopermitinvestorstomorefullyunderstandhowAlconmanagementassessesunderlyingperformance.Thesenon-IFRSmeasuresarenot,andshouldnotbeviewedas,asubstituteforIFRSmeasures.

Coreresults

Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets,excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss, and certainacquisition related items. The following items that exceed a threshold of $10 million and are deemed exceptional are also excluded from coreresults: integrationanddivestment relatedincomeandexpenses, divestment gainsandlosses, restructuring charges/releasesandrelateditems,legal related items, impairments of property, plant and equipment and financial assets, as well as incomeand expense items that managementdeemsexceptionalandthatareorareexpectedtoaccumulatewithintheyeartobeovera$10millionthreshold.

TaxesontheadjustmentsbetweenIFRSandcoreresultstakeintoaccount,foreachindividualitemincludedintheadjustment,thetaxratethatwillfinallybeapplicabletotheitembasedonthejurisdictionwheretheadjustmentwillfinallyhaveataximpact.Generally,thisresultsinamortizationandimpairmentofintangibleassetsandacquisition-relatedrestructuringandintegrationitemshavingafulltaximpact.Thereisusuallyataximpactonotheritems,althoughthisisnotalwaysthecaseforitemsarisingfromlegalsettlementsincertainjurisdictions.

Alconbelievesthatinvestorunderstandingofitsperformanceisenhancedbydisclosingcoremeasuresofperformancebecause,sincetheyexcludeitemsthatcanvarysignificantlyfromperiodtoperiod,thecoremeasuresenableahelpfulcomparisonofbusinessperformanceacrossperiods.Forthissamereason,AlconusesthesecoremeasuresinadditiontoIFRSandothermeasuresasimportantfactorsinassessingitsperformance.

AlimitationofthecoremeasuresisthattheyprovideaviewofAlconoperationswithoutincludingalleventsduringaperiod,suchastheeffectsofanacquisition,divestment,oramortization/impairmentsofpurchasedintangibleassetsandrestructurings.

Constantcurrencies

Changesintherelativevaluesofnon-UScurrenciestotheU.S.dollarcanaffectAlconfinancialresultsandfinancialposition.Toprovideadditionalinformationthatmaybeusefultoinvestors,includingchangesinsalesvolume,wepresentinformationaboutchangesinournetsalesandvariousvaluesrelatingtooperatingandnetincomethatareadjustedforsuchforeigncurrencyeffects.

Constantcurrencycalculationshavethegoalofeliminatingtwoexchangerateeffectssothatanestimatecanbemadeofunderlyingchangesintheconsolidatedincomestatementexcluding:

• theimpactoftranslatingtheincomestatementsofconsolidatedentitiesfromtheirnon-USdollarfunctionalcurrenciestotheU.S.dollar;and

• theimpactofexchangeratemovementsonthemajortransactionsofconsolidatedentitiesperformedincurrenciesotherthantheirfunctionalcurrency.

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Alconcalculatesconstantcurrencymeasuresbytranslatingthecurrentyear'sforeigncurrencyvaluesforsalesandotherincomestatementitemsintoUSdollars,usingtheaverageexchangeratesfromtheprioryearandcomparingthemtotheprioryearvaluesinUSdollars.

Freecashflow

Alcondefinesfreecashflowasnetcashflowsfromoperatingactivitieslesscashflowassociatedwiththepurchaseorsaleofproperty,plantandequipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator ofAlcon'sabilitytooperatewithoutrelianceonadditionalborrowingoruseofexistingcash.FreecashflowisnotintendedtobeasubstitutemeasurefornetcashflowsfromoperatingactivitiesasdeterminedunderIFRS.

Netliquidity/(debt)

Alcon defines net liquidity/(debt) as current and non-current financial debt less cash and cash equivalents, current investments and derivativefinancialinstruments.Netliquidity/(debt)ispresentedasadditionalinformationbecausemanagementbelievesitisausefulsupplementalindicatorofAlcon's ability to pay dividends, to meet financial commitments and to invest in new strategic opportunities, including strengthening its balancesheet.

Growthrateandmargincalculations

Foreaseofunderstanding,Alconusesasignconventionforitsgrowthratessuchthatareductioninoperatingexpensesorlossescomparedtotheprioryearisshownasapositivegrowth.

Gross margins, operating income/(loss) margins and core operating incomemargins are calculated based uponnet sales to third parties unlessotherwisenoted.

Reconciliationofguidanceforforward-lookingnon-IFRSmeasures

Theforward-lookingguidanceincludedinthispressreleasecannotbereconciledtothecomparableIFRSmeasureswithoutunreasonableefforts,becausewearenotabletopredictwithreasonablecertaintytheultimateamountornatureofexceptionalitemsinthefiscalyear.Theseitemsareuncertain,dependonmanyfactorsandcouldhaveamaterialimpactonourIFRSresultsfortheguidanceperiod.

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Financialtables

Secondquarter/firsthalf2019netsalesbyregion

  Threemonthsended   Sixmonthsended

($millionsunlessindicatedotherwise) June30,2019   June30,2018   June30,2019   June30,2018                               UnitedStates 779   42%   750   41%   1,516   42%   1,462   41%International 1,084   58%   1,069   59%   2,124   58%   2,136   59%Netsalestothirdparties 1,863   100%   1,819   100%   3,640   100%   3,598   100%

Consolidatedincomestatementforthefirstsixmonths(unaudited)

  Threemonthsended   Sixmonthsended

($millionsexcept(loss)/earningspershare) June30,2019 June30,2018 Change   June30,2019 June30,2018 ChangeNetsalestothirdparties 1,863 1,819 44   3,640 3,598 42Salestoformerparent — 1 (1)   — 2 (2)Otherrevenues 40 — 40   87 — 87Netsalesandotherrevenues 1,903 1,820 83   3,727 3,600 127Costofnetsales (922) (942) 20   (1,847) (1,855) 8Costofotherrevenues (34) — (34)   (81) — (81)Grossprofit 947 878 69   1,799 1,745 54Selling,general&administration (760) (722) (38)   (1,416) (1,375) (41)Research&development (167) (152) (15)   (313) (289) (24)Otherincome 6 62 (56)   18 81 (63)Otherexpense (79) (28) (51)   (189) (51) (138)Operating(loss)/income (53) 38 (91)   (101) 111 (212)Interestexpense (35) (6) (29)   (44) (12) (32)Otherfinancialincome&expense (8) (8) —   (16) (14) (2)(Loss)/incomebeforetaxes (96) 24 (120)   (161) 85 (246)Taxes (294) (9) (285)   (338) (32) (306)Net(loss)/income (390) 15 (405)   (499) 53 (552)               

(Loss)/earningspershare

Basic (0.80) 0.03 (0.83)   (1.02) 0.11 (1.13)Diluted (0.80) 0.03 (0.83)   (1.02) 0.11 (1.13)               

Weightedaveragenumberofsharesoutstanding(millions)(1)

Basic 488.2 488.2 —   488.2 488.2 —Diluted 488.2 488.2 —   488.2 488.2 —

(1) Forperiodspriortothespin-off,thedenominatorforbasicanddilutedearningspersharewascalculatedusingthe488.2millionsharesofcommonstockdistributedinthespin-off.

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Keybalancesheethighlights

($millions) June30,2019 December31,2018Cashandcashequivalents 721 227Currentfinancialdebts 1,771 47Non-currentfinancialdebts 1,751 —

Freecashflow

ThefollowingisasummaryofAlconfreecashflowforthesixmonthsendedJune30,2019and2018,togetherwithareconciliationtonetcashflowsfromoperatingactivities,themostdirectlycomparableIFRSmeasure:

  Sixmonthsended($millions) June30,2019   June30,2018       

Netcashflowsfromoperatingactivities 301   555Purchaseofproperty,plant&equipment (206)   (179)Freecashflow 95   376

Net(debt)/liquidity

($millions) AtJune30,2019   

Currentfinancialdebt (1,771)Otherfinancialliabilitiestoformerparent —Otherfinancialreceivablesfromformerparent —Non-currentfinancialdebt(1) (1,751)Totalfinancialdebt (3,522)   

Lessliquidity:Cashandcashequivalents 721Derivativefinancialinstruments 1Totalliquidity 722Net(debt)/liquidity(1) (2,800)(1) Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 2 and 7 to the Condensed

ConsolidatedInterimFinancialStatements.Underthemodifiedretrospectiveapproach,comparativeinformationwasnotrestated.However,thebalancespreviously reported in "Financial debts" for a finance lease obligation have been reclassified from "Financial debts" to "Non-current lease liabilities" toenhance the inter-period comparability of information presented. This reclassification of Balance Sheet presentation has also been reflected in thecomputationofNet(debt)/liquidity,resultinginanincreaseinNet(debt)/liquidityof$89millionasofDecember31,2018.

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ReconciliationofIFRStoCoreresults

Three months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

     

($millionsexcept(loss)/earningspershare)IFRSResults SeparationCosts(2)

OtherItems(3)

CoreResults

Grossprofit 947 252 3 2 1,204

Selling,general&administration (760)   13 2 (745)Research&development (167) 6 2 13 (146)

Otherincome 6     2 8

Otherexpense (79)   60 8 (11)Operating(loss)/income (53) 258 78 27 310(Loss)/incomebeforetaxes (96) 258 78 27 267Taxes(4) (294) (36) (18) 312 (36)Net(loss)/income (390) 222 60 339 231

Basic(loss)/earningspershare(5) (0.80)       0.47

Diluted(loss)/earningspershare(5) (0.80)       0.47(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Gross profit  includes manufacturing sites  consolidation activities.  Selling,  general  & administration includes expenses for  integration of  recent  acquisitions.  Research &development includes $16 million primarily for the amortization of option rights and expenses for integration of recent acquisitions,  partially offset by a $3 million fairvalue adjustment of a contingent consideration liability. Other income and expense include $10 million for fair value adjustments of a financial asset and other items.

(4) Total tax adjustments of $258 million included tax associated with operating income core adjustments and discrete tax items. Tax associated with operating income coreadjustments of $363 million totaled $58 million with an average tax rate of 16.0%.

Coretaxadjustmentsfordiscreteitemstotaled$316million,includinga$301millionnon-cashtaxexpenseforre-measurementofdeferredtaxbalancesasaresultofSwisstaxreform,changesinuncertaintaxpositionsandotheritems.

(5) Corebasicearningspershareiscalculatedusingthe488.2 million weighted-averagesharesofcommonstockoutstandingduringtheperiodfollowingthespin-off.

Coredilutedearningspersharealsocontemplatedilutivesharesof1.8millionassociatedwithunvestedequity-basedawardsasdescribedinNote6totheCondensedConsolidatedInterimFinancialStatements,yielding490.0millionweighted-averagedilutedsharesforthethreemonthsendedJune30,2019.

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ReconciliationofIFRStoCoreresults(continued)

Three months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millionsexcept(loss)/earningspershare)IFRSResults Impairments(2)

Restructuringitems(3)

Legalitems(4)

OtherItems(5)

CoreResults

Grossprofit 878 251 39 1,168

Selling,general&administration (722)           (722)

Research&development (152) 3       18 (131)

Otherincome 62     (1) (1) (49) 11

Otherexpense (28)     3 10 1 (14)Operatingincome 38 254 39 2 9 (30) 312Incomebeforetaxes 24 254 39 2 9 (30) 298

Taxes(6) (9)           (42)

Netincome 15           256

Basicearningspershare(7) 0.03           0.52

Dilutedearningspershare(7) 0.03           0.52(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes other restructuring income and charges and related items.

(4) Includes legal costs related to an investigation.

(5) Research and development includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Other income and expense primarilyinclude $49 million for fair value adjustments of a financial asset.

(6) Tax associated with operating income core adjustments of $274 million totaled $33 million.  The core tax rate of 14.2% has been applied to core pre-tax income for theperiod.

(7) For periods prior to the spin-off, the denominator for both core basic and diluted earnings per share was calculated using the 488.2  million  shares ofcommonstockdistributedinthespin-off.

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ReconciliationofIFRStoCoreresults(continued)

Six months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

       

($millionsexcept(loss)/earningspershare)IFRSResults

SeparationCosts(2)

Legalitems(3)

OtherItems(4)

CoreResults

Grossprofit 1,799 502 3 10 2,314

Selling,general&administration (1,416)   13   9 (1,394)

Research&development (313) 11 2   20 (280)

Otherincome 18       (1) 17

Otherexpense (189)   60 32 64 (33)Operating(loss)/income (101) 513 78 32 102 624(Loss)/incomebeforetaxes (161) 513 78 32 102 564Taxes(5) (338) (70) (18) (8) 348 (86)Net(loss)/income (499) 443 60 24 450 478

Basic(loss)/earningspershare(6) (1.02)         0.98

Diluted(loss)/earningspershare(6) (1.02)         0.98(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Includes legal settlement costs and certain external legal fees.

(4) Gross  Profit  includes  spin  readiness  costs  and  manufacturing  sites  consolidation  activities.  Selling,  general  &  administration  includes  expenses  for  spin  readiness  andintegration  of  recent  acquisitions.  Research  &  development  includes  $33  million  primarily  for  the  amortization  of  option  rights  and  expenses  for  integration  of  recentacquisitions, partially offset by $13 million in fair value adjustments of a contingent consideration liability.  Other income and expense primarily includes spin readinesscosts.

(5) Total tax adjustments of $252 million included tax associated with operating income core adjustments and discrete tax items. Tax associated with operating income coreadjustments of $725 million totaled $115 million with an average tax rate of 15.9%.

Coretaxadjustmentsfordiscreteitemstotaled$367million,includinga$301millionnon-cashtaxexpenseforre-measurementofdeferredtaxbalancesasaresultofSwisstaxreformanda$68milliontaxexpenserelatedtoratechangesintheUSfollowingtheSpin-Off,offsetbynetchangesinuncertaintaxpositions.

(6) Corebasicearningspershareiscalculatedusingthe488.2 million weighted-averagesharesofcommonstockoutstandingduringtheperiodfollowingthespin-off.

Coredilutedearningspersharealsocontemplatedilutivesharesof0.9millionassociatedwithunvestedequity-basedawardsasdescribedinNote6totheCondensedConsolidatedInterimFinancialStatements,yielding489.1millionweighted-averagedilutedsharesforthesixmonthsendedJune30,2019.

12

ReconciliationofIFRStoCoreresults(continued)

Six months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millionsexcept(loss)/earningspershare)IFRSResults Impairments(2)

Restructuringitems(3)

Legalitems(4)

OtherItems(5)

CoreResults

Grossprofit 1,745 502 39 2,286

Selling,general&administration (1,375)           (1,375)

Research&development (289) 5       31 (253)

Otherincome 81     (1) (1) (59) 20

Otherexpense (51)     3 19 5 (24)Operatingincome 111 507 39 2 18 (23) 654Incomebeforetaxes 85 507 39 2 18 (23) 628

Taxes(6) (32)           (89)

Netincome 53           539

Basicearningspershare(7) 0.11           1.10

Dilutedearningspershare(7) 0.11           1.10

(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes restructuring income and charges and related items.

(4) Includes legal costs related to an investigation.

(5) Research and development includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Other income and expense primarilyinclude fair value adjustments of a financial asset.

(6) Tax associated with operating income core adjustments of $543 million totaled $57 million.  The core tax rate of 14.2% has been applied to core pre-tax income for theperiod.

(7) For periods prior to the spin-off, the denominator for both core basic and diluted earnings per share was calculated using the 488.2 million sharesofcommonstockdistributedinthespin-off.

13

AboutAlconAlconhelpspeopleseebrilliantly.Asthegloballeaderineyecarewithaheritagespanningmorethansevendecades,weofferthebroadestportfolioofproductstoenhancesightandimprovepeople’slives.OurSurgicalandVisionCareproductstouchthelives of more than 260 million people in over 140 countries each year living with conditions like cataracts, glaucoma, retinaldiseasesandrefractiveerrors.Ourmorethan20,000associatesareenhancingthequalityoflifethroughinnovativeproducts,partnershipswitheyecareprofessionalsandprogramsthatadvanceaccesstoqualityeyecare.Learnmoreatwww.alcon.com.

Connectwithuson  

InvestorRelationsChristinaCheng+41589112110(Geneva)+18176152789(FortWorth)investor.relations@alcon.com

MediaRelationsWesWarnock+41589112111(Geneva)+18176152501(FortWorth)globalmedia.relations@alcon.com

14

ALCONINC.CONDENSEDCONSOLIDATEDINTERIMFINANCIALREPORT

INDEX PageOperatingPerformance 2CondensedConsolidatedInterimFinancialStatements(unaudited)

ConsolidatedIncomeStatements 11ConsolidatedStatementsofComprehensive(Loss)/Income 12ConsolidatedBalanceSheets 13ConsolidatedStatementsofChangesinEquity 14ConsolidatedStatementsofCashFlows 15NotestoCondensedConsolidatedInterimFinancialStatements 16

SupplementaryInformationNon-IFRSMeasuresasDefinedbytheCompany 34ReconciliationofIFRSResultstoCoreResults 36EBITDA 42CashFlowandNet(Debt)/Liquidity 42Net(Debt)/Liquidity 43FreeCashFlow 43

Disclaimer 44

1

OPERATINGPERFORMANCE

Keyfigures

  Threemonthsended Change%   Sixmonthsended Change%

($millionsunlessindicatedotherwise) June30,2019 June30,2018 $ cc(1)   June30,2019 June30,2018 $ cc(1)

                   

Netsalestothirdparties 1,863 1,819 2 5   3,640 3,598 1 5

Grossprofit 947 878 8 13   1,799 1,745 3 9

Operating(loss)/income (53) 38 nm nm   (101) 111 nm nm

Operating margin (%) (2.8) 2.1       (2.8) 3.1    

Net(loss)/income (390) 15 nm nm   (499) 53 nm nm

Basicanddiluted(loss)/earningspershare($)(2) (0.80) 0.03 nm nm   (1.02) 0.11 nm nm

                   

Coreresults(1)  

Coreoperatingincome 310 312 (1) 7   624 654 (5) 4

Core operating margin % 16.6 17.2       17.1 18.2    

Corenetincome 231 256 (10) (1)   478 539 (11) (2)

Corebasicearningspershare($)(2) 0.47 0.52 (10) (1)   0.98 1.10 (11) (2)

Coredilutedearningspershare($)(3) 0.47 0.52 (10) (1)   0.98 1.10 (11) (2)nm=notmeaningful(1) Core results and constant currencies (cc) as presented in this table are non-IFRS measures. Alcon uses certain non-IFRS metrics when measuring

performance, including when measuring current period results against prior periods. Refer to the 'Supplementary Information' section for additionalinformationandreconciliationtables.

(2) Calculatedusing488.2 million sharesforbothcurrentandprioryearperiods.(3) Calculatedusing490.0millionand489.1millionweighted-averagedilutedsharesforthethreeandsixmonthsendedJune30,2019,respectively,and488.2

million sharesfortheprioryearperiods.Refertothe'SupplementaryInformation'sectionforadditionaldetails.

2

Allcommentsbelowfocusonconstantcurrencies(cc)movementsunlessotherwisenoted.

Netsalesbysegment

  Threemonthsended Change%   Sixmonthsended Change%($millionsunlessindicatedotherwise) June30,2019 June30,2018 $ cc(1)   June30,2019 June30,2018 $ cc(1)

                 Surgical   Implantables 300 298 1 4   585 577 1 6Consumables 588 578 2 5   1,139 1,119 2 6Equipment/other 163 154 6 7   327 311 5 7TotalSurgical 1,051 1,030 2 5   2,051 2,007 2 6                   

VisionCare  Contactlenses 493 478 3 6   991 987 — 4Ocularhealth 319 311 3 5   598 604 (1) 2TotalVisionCare 812 789 3 6   1,589 1,591 — 3Netsalestothirdparties 1,863 1,819 2 5   3,640 3,598 1 5(1)Constantcurrenciesisanon-IFRSmeasure.Refertothe'Supplementaryinformation'sectionforadditionalinformation.

SecondQuarter

Surgical

Surgicalnetsaleswere$1.1billion(+2%,+5%cc).Implantablesgrew(+1%,+4%cc),drivenbystrongdemandforAdvancedTechnologyIOLs,includingtheAcrySof IQPanOptix trifocal IOLs,whichcontinuetoperformwellacrossallgeographies.Consumablesgrew(+2%,+5%cc), drivenbycataractandvitreoretinalconsumables,whichcontinuetobenefitfromastrongglobalinstalledequipmentbase.Equipment/othergrew(+6%,+7%cc),drivenbyservicerevenuesandcataractequipmentandaccessories.

Vision Care

VisionCarenetsaleswere$0.8billion(+3%,+6%cc).Contactlensesgrew(+3%,+6%cc),drivenmainlybycontinueddouble-digitgrowthofDAILES TOTAL1 .Ocularhealthgrew(+3%,+5%cc),drivenbyartificialtears,primarilySystane intheUS.

FirstHalf

Surgical

Surgicalnetsaleswere$2.1billion(+2%,+6%cc).Implantablesgrew(+1%,+6%cc),drivenbyAdvancedTechnologyIOLs.Consumablesgrew(+2%,+6%cc), drivenbycataractandvitreoretinalconsumables.Equipment/othergrew(+5%,+7%cc),drivenbyservicerevenues,cataractequipmentandproceduraleyedrops.

Vision Care

VisionCarenetsaleswere$1.6billion(0%,+3%cc).Contactlensesgrew(0%,+4%cc),ascontinueddoubledigitgrowthofDAILES TOTAL1waspartiallyoffsetbydeclinesinothercontactlenses.Ocularhealthgrew(-1%,+2%cc),drivenbySystane ,partiallyoffsetbydeclinesincontactlenscareasthemarketcontinuestoshifttodailylensmodalities.

3

Operating(loss)/income

  Threemonthsended Change%   Sixmonthsended Change%($millionsunlessindicatedotherwise) June30,2019 June30,2018 $ cc(1)   June30,2019 June30,2018 $ cc(1)

                   

Grossprofit 947 878 8 13   1,799 1,745 3 9Selling,general&administration (760) (722) (5) (8)   (1,416) (1,375) (3) (6)Research&development (167) (152) (10) (11)   (313) (289) (8) (9)Otherincome 6 62 (90) (90)   18 81 (78) (77)Otherexpense (79) (28) nm nm   (189) (51) nm nmOperating(loss)/income (53) 38 nm nm   (101) 111 nm nmOperating margin (%) (2.8) 2.1       (2.8) 3.1                       

Coreresults(1)                  Coregrossprofit 1,204 1,168 3 7   2,314 2,286 1 6Coreoperatingincome 310 312 (1) 7   624 654 (5) 4Core operating margin (%) 16.6 17.2       17.1 18.2    nm=notmeaningful(1) Coreresultsandconstantcurrenciesarenon-IFRSmeasures.Refertothe'Supplementaryinformation'sectionforadditionalinformationandreconciliation

tables.

SecondQuarter

Operatinglosswas$53million,comparedtooperatingincomeof$38millionintheprioryearperiod.Highersalesandimprovedgrossmarginweremorethanoffsetbyseparationcostsandinvestmentsinresearch&developmentandITincludingtheSAPimplementation.Theprioryearperiodalsowasfavorablyimpactedbyafairvalueadjustmentofafinancialasset.Therewasanegative1.3percentagepointimpactonoperatingmarginfromcurrency.

Adjustmentstoarriveatcoreoperatingincomewere$363million,mainlydueto$258millionofamortizationand$78millionofseparationcosts.

Coreoperatingincomewas$310million(-1%,+7%cc),comparedto$312millionintheprioryearperiod.Highersalesandimprovedgrossmarginwerepartiallyoffsetbyinvestmentsinresearch&developmentandITincludingtheSAPimplementation.Therewasanegative0.9percentagepointimpactoncoreoperatingmarginfromcurrency.

FirstHalf

Operatinglosswas$101million,comparedtoanoperatingincomeof$111millionintheprioryearperiod,primarilyduetospinreadinesscosts,separationcostsandinvestmentsinresearch&developmentandITincludingtheSAPimplementation, partiallyoffset byhighersalesandgrossmargin.Theprioryearperiodalsowasfavorablyimpactedbyafairvalueadjustmentofafinancialasset.Therewasanegative1.7percentagepointimpactonoperatingmarginfromcurrency.

Adjustmentstoarriveatcoreoperatingincomewere$725million,mainlydueto$513millionofamortization,$72millionofspinreadinesscosts,$78millionofseparationcostsand$32millionoflegalitems.

Coreoperatingincomewas$624million(-5%,+4%cc),comparedto$654millionintheprioryearperiod.Highersalesandimprovedgrossmarginwerepartiallyoffsetbyinvestmentsinresearch&developmentandITincludingtheSAPimplementation.Therewasanegative1.0percentagepointimpactoncoreoperatingmarginfromcurrency.

4

Segmentcontribution(1)

($millionsunlessindicatedotherwise)

Threemonthsended Change%   Sixmonthsended Change%June30,2019 June30,2018 $ cc(2)   June30,2019 June30,2018 $ cc(2)

                   

Surgicalsegmentcontribution 217 219 (1) 6   440 422 4 13 As % of net sales 20.6 21.3       21.5 21.0    VisionCaresegmentcontribution 135 131 3 10   282 314 (10) (4) As % of net sales 16.6 16.6       17.7 19.7    Notallocatedtosegments (405) (312) (30) (30)   (823) (625) (32) (32)Operating(loss)/income (53) 38 nm nm   (101) 111 nm nm                   

Coreresults(2)                  CoreSurgicalsegmentcontribution 235 237 (1) 6   463 453 2 11 As % of net sales 22.4 23.0       22.6 22.6    CoreVisionCaresegmentcontribution 143 131 9 17   301 314 (4) 2 As % of net sales 17.6 16.6       18.9 19.7    Corenotallocatedtosegments (68) (56) (21) (25)   (140) (113) (24) (25)Coreoperatingincome 310 312 (1) 7   624 654 (5) 4(1) ForadditionalinformationregardingsegmentcontributionpleaserefertoNote4totheCondensedConsolidatedInterimFinancialStatements.(2) Coreresultsandconstantcurrenciesarenon-IFRSmeasures.Refertothe'Supplementaryinformation'sectionforadditionalinformationandreconciliation

tables.

SecondQuarter

Surgical

Surgicalsegmentcontributionwas$217million(-1%,+6%cc),comparedto$219millionintheprioryearperiod.Highersalesandimprovedgrossmarginwerepartiallyoffsetbyhigherresearch&developmentinvestments.

AdjustmentstoarriveatcoreSurgicalsegmentcontributionwere$18million,primarilyforbusinessdevelopmentcharges,inlinewiththeprioryearperiod.

CoreSurgicalsegmentcontributionwas$235million(-1%,+6%cc),comparedto$237millionintheprioryearperiod.Highersalesandimprovedgross margin were partially offset by higher research & development investments. There was a negative 0.8 percentage point impact on coresegmentcontributionmarginfromcurrency.

Vision Care

VisionCaresegment contribution was$135million(+3%,+10%cc), comparedto$131millionintheprior yearperiod. Highersales, improvedgrossmarginandimprovedselling,general&administrationsalesleveragewerepartiallyoffsetbyhigherresearch&developmentinvestments.

Adjustments to arrive at core Vision Care segment contribution were$8millionprimarily dueto separation costs. Noadjustments weremadetoarriveatcoreresultsfortheprioryearperiod.

CoreVisionCaresegmentcontributionwas$143million(+9%,+17%cc),comparedto$131millionintheprioryearperiod.Highersales,improvedgrossmargin andimprovedselling, general &administration sales leveragewerepartially offset by higher research &development investments.Therewasanegative0.6percentagepointimpactoncoresegmentcontributionmarginfromcurrency.

5

Not allocated to segments

Operatinglossnotallocatedtosegmentstotaled$405million,comparedto$312millionintheprioryearperiod,increasingprimarilydueto$70millionofseparationcostsandhighercorporatecosts,consistingprimarilyofITcosts.Theprioryearperiodalsowasfavorablyimpactedbyafairvalueadjustmentofafinancialasset.

Coreoperatingincomenotallocatedtosegmentsamountedtoanetcoreexpenseof$68million,comparedwithanetcoreexpenseof$56millionintheprioryearperiodduetohighercorporatecosts,consistingprimarilyofITcosts.

FirstHalf

Surgical

Surgical segmentcontributionwas$440million(+4%,+13%cc), comparedto$422millionintheprior yearperiod. Highersalesandimprovedgrossmarginwerepartiallyoffsetbyhigherresearch&developmentinvestments.

Adjustments toarriveat coreSurgical segment contributionwere$23million, primarily duetobusinessdevelopment charges, comparedto$31millionintheprioryearperiod.

Core Surgical segment contribution was $463 million ( +2% , +11% cc), compared to $453 million in the prior year period. Higher sales andimprovedgrossmarginwerepartiallyoffsetbyresearch&developmentinvestments.Therewasanegative1.0percentagepointofimpactoncoresegmentcontributionmarginfromcurrency.

Vision Care

VisionCaresegmentcontributionwas$282million(-10%,-4%cc),comparedto$314millionintheprioryearperiod.Highersalesweremorethanoffsetbylowergrossmargin,spinreadinesscosts,separationcostsandhigherresearch&developmentinvestments.

AdjustmentstoarriveatcoreVisionCaresegmentcontributionwere$19millionduetospinreadinessandseparationcosts.Noadjustmentsweremadetoarriveatcoreresultsfortheprioryearperiod.

Core Vision Care segment contribution was $301million (-4%,+2%cc), compared to$314million in the prior year period. Higher sales andimprovedselling,general&administrationsalesleveragewerepartiallyoffsetbyhigherresearch&developmentinvestments.Therewasanegative0.6percentagepointimpactoncoresegmentcontributionmarginfromcurrency.

Not allocated to segments

Operating loss not allocated to segments totaled$823million , compared to$625million in the prior year period, increasing mainly due to$70millionofseparationcosts,$62millionofspinreadinesscostsandhighercorporatecosts,consistingprimarilyoflegalitemsandITcosts.Theprioryearperiodalsowasfavorablyimpactedbyafairvalueadjustmentofafinancialasset.

Coreoperatingincomenotallocatedtosegmentsamountedtonetcoreexpenseof$140million,comparedto$113millionintheprioryearperiod,drivenbyhighercorporatecosts,consistingprimarilyofITcosts.

6

Non-operatingincomeandexpense

  Threemonthsended Change%   Sixmonthsended Change%

($millionsunlessindicatedotherwise) June30,2019 June30,2018 $ cc(1)   June30,2019 June30,2018 $ cc(1)

                   Operating(loss)/income (53) 38 nm nm   (101) 111 nm nmInterestexpense (35) (6) nm nm   (44) (12) nm nmOtherfinancialincome&expense (8) (8) — (2)   (16) (14) (14) (11)(Loss)/incomebeforetaxes (96) 24 nm nm   (161) 85 nm nmTaxes (294) (9) nm nm   (338) (32) nm nmNet(loss)/income (390) 15 nm nm   (499) 53 nm nmBasicanddiluted(loss)/earningspershare($) (0.80) 0.03 nm nm   (1.02) 0.11 nm nm                   

Coreresults(1)                  Coretaxes (36) (42) 14 10   (86) (89) 3 (6)Corenetincome 231 256 (10) (1)   478 539 (11) (2)Corebasicearningspershare($) 0.47 0.52 (10) (1)   0.98 1.10 (11) (2)Coredilutedearningspershare($) 0.47 0.52 (10) (1)   0.98 1.10 (11) (2)nm=notmeaningful(1) Coreresultsandconstantcurrenciesarenon-IFRSmeasures.Refertothe'Supplementaryinformation'sectionforadditionalinformationandreconciliation

tables.

SecondQuarter

Interest expense

Interestexpensewas$35million,comparedwith$6millionintheprioryearperiod.Interestexpenserecognizedinthecurrentperiodisdrivenbythebridgeandothertermloans,localbilateralfacilitiesandtheadoptionofIFRS16,Leases .

Other financial income & expense

Otherfinancialincome&expensewasanetexpenseof$8million,consistingprimarilyofhedgingcostsandforeigncurrencyexchangegainsandlosses,comparablewiththeprioryearperiod.

Taxes

Taxexpensewas$294million,comparedwith$9millionintheprioryearperiod.Taxesrecognizedinthecurrentperiodincludeanon-cashtaxexpenseof$301millionrelatedtothere-measurementofdeferredtaxassetsandliabilitiesasaresultofSwisstaxreform,changesinuncertaintaxpositionsandotheritems.

Adjustmentstoarriveatcoretaxexpensewere$258million,primarilyrelatedtoSwisstaxreform,partiallyoffsetbytaxassociatedwithoperatingincomecoreadjustments.

Coretaxexpensewas$36million,comparedto$42millionintheprioryearperiod.Theaveragecoretaxratewas13.5%comparedto14.1%intheprioryearperiod,primarilydrivenbythemixofpre-taxincomeacrossgeographicaltaxjurisdictions.

Net (loss)/income and (loss)/earnings per share

Netlosswas$390million, comparedtonetincomeof$15millionintheprioryearperiod.Thedecreasewasmainlyattributabletoanoperatingloss,higherinterestexpenseandhighertaxexpense.Theassociatedbasicanddiluted(loss)/earningspersharewere$(0.80),comparedto$0.03intheprioryearperiod.

Corenetincomewas$231million,comparedto$256millionintheprioryearperiod,dueprimarilytohigherinterestexpense.Theassociatedcorebasicanddilutedearningspersharewere$0.47comparedto$0.52intheprioryearperiod.

7

FirstHalf

Interest expense

Interest expense was$44million , compared with$12million in the prior year period, driven by the bridge and other term loans, local bilateralfacilitiesandtheadoptionofIFRS16,Leases .

Other financial income & expense

Otherfinancialincome&expensewasanetexpenseof$16million,comparedto$14millionintheprioryearperiod,andconsistedprimarilyofhedgingcostsandforeigncurrencyexchangegainsandlosses.

Taxes

Taxexpensewas$338million,comparedwith$32millionintheprioryearperiod.Taxesrecognizedinthecurrentperiodincludea$301millionnon-cashtaxexpenseforSwisstaxreformanda$68millionnon-cashtaxexpenseprimarilyforre-measurementofdeferredtaxbalancesrelatedtoratechangesintheUSfollowingtheSpin-Off,offsetbynetchangesinuncertaintaxpositions.

Adjustmentstoarriveatcoretaxexpensewere$252million,primarilyrelatedtoSwisstaxreform,partiallyoffsetbytaxassociatedwithoperatingincomecoreadjustments.

Coretaxexpensewas$86million,comparedto$89millionintheprioryearperiod.Theaveragecoretaxrateincreasedto15.2%from14.2%intheprioryearperiod.TheincreaseinthecoreeffectivetaxrateisprimarilydrivenbyalossofcertaintaxbenefitsintheUSduetotheSpin-Offandthemixofpre-taxincomeacrossgeographicaltaxjurisdictions.

Net (loss)/income and (loss)/earnings per share

Netlosswas$499million, comparedtonetincomeof$53millionintheprioryearperiod.Thedecreasewasmainlyattributabletoanoperatingloss,higherinterestexpenseandhighertaxexpense.Theassociatedbasicanddiluted(loss)/earningspersharewere$(1.02),comparedto$0.11intheprioryearperiod.

Corenetincomewas$478million, comparedto$539millionin theprior year period, primarily dueto lower core operating incomeandhigherinterestexpense.Theassociatedcorebasicanddilutedearningspersharewere$0.98comparedto$1.10intheprioryearperiod.

Cashflow

Netcashflowsfromoperatingactivitiesamountedto$301millioninthefirsthalfof2019,comparedto$555millionintheprioryearperiodprimarilyattributabletochangesinnetworkingcapital,alegalsettlement,andinterestpaymentsontheCompany'sfinancialdebts.Changesinnetworkingcapital were primarily driven by contract manufacturing receivables from former parent, which are included within Other current assets. Tradereceivables had a larger increase than the prior year period, in line with increased sales. Trade payables increased during the current reportingperiod due to spin readiness and separation costs incurred. Refer to Note 9 of the Condensed Consolidated Interim Financial Statements foradditionaldetailsregardingchangeswithinnetworkingcapital.

Net cash flows used in investing activities amounted to$558million in thefirst half of2019, comparedto$275million in the prior year period,primarily duetotheacquisitionof PowerVisioninMarch2019.Refer toNote3of theCondensedConsolidatedInterimFinancial Statementsforadditionalinformation.

Netcashflowsfromfinancingactivitiesamountedto$747millioninthefirsthalfof2019,comparedto$298millionofnetcashoutflowsintheprioryearperiod.Cashinflowsinthecurrentperiodwereattributabletoproceedsfromtheissuanceofnon-currentandcurrentfinancialdebtstotaling$3.5billionassociatedwithborrowingsfromthebridgeandothertermloansandlocalbilateralfacilities,partiallyoffsetbymovementsoffinancingprovidedtotheCompany'sformerparent,whichincreasedby$2.4billionfromtheprioryearperiod,dueto$3.1billionincashpaymentsmadetotheCompany'sformerparentanditsaffiliatespriortotheSpin-Off.RefertoNote8oftheCondensedConsolidatedInterimFinancialStatementsforadditionalinformation.

8

Freecashflow(non-IFRSmeasure)

Freecashflowamountedto$95millioninthefirsthalfof2019,comparedto$376millionintheprioryearperiod,withthedecreasemainlycausedbylowercashflowsfromoperatingactivitiesduetospinreadinessandseparationcosts,interestpaymentsassociatedwithfinancialdebts,andalegalsettlement.

For additional information regardingfreecashflow, whichis a non-IFRSmeasure, seetheexplanationof non-IFRSmeasures andreconciliationtablesinthe'SupplementaryInformation'section.

Balancesheet

Assets

Total non-current assetsof$23.6billionasofJune30,2019remainedstablecomparedtoDecember31,2018.Therewasadecreaseof$332millioninDeferredtaxassetsduetooffsettingdeferredtaxliabilitieswithinthesametaxjurisdictionwhichwaslargelyoffsetbyincreasesof$187millioninRight-of-useassetsfromtheimplementationofIFRS16,Leases asdescribedinNote7totheCondensedConsolidatedInterimFinancialStatements, $87 million in Property, plant & equipment due to continued capital expenditures net of recurring depreciation, and $46 million inGoodwillandotherintangibleassetsduetothePowerVisionacquisitionnetofrecurringamortization.

Totalcurrentassetsof$4.1billionasofJune30,2019,increased$743millioncomparedtoDecember31,2018,mainlyduetoincreasesinCashandcashequivalentsof$494millionattributabletoborrowingsfromthebridgeandothertermloansandlocalbilateralfacilitiesasdescribedinNote8 to the Condensed Consolidated Interim Financial Statements offset by payments to former parent, Trade receivables of $1.4 billion increased$154millionandOthercurrentassetsof$0.5billionincreased$104million.

Liabilities

Totalnon-currentliabilitiesincreased$2.0billionto$4.5billionasofJune30,2019,comparedto$2.5billionasofDecember31,2018,primarilyduetothirdpartyfinancialdebtsof$1.8billion.Thereductionindeferredtaxliabilitieswasduetothenetofthere-measurementofdeferredtaxliabilitiesassociatedwiththeSwisstaxreformanddeferredtaxassetsoffsettingdeferredtaxliabilitieswithinthesametaxjurisdiction,asdiscussedabove.Provisionsandothernon-currentliabilitiesandLeaseliabilitiesalsoincreased$212millionand$131million,respectively,primarilyduetoacontingentconsiderationliabilityrecordedforthePowerVisionacquisitionandimplementationofIFRS16,Leases ,respectively.RefertoNotes3,7and8totheCondensedConsolidatedInterimFinancialStatementsforadditionaldetailsrelatedtothePowerVisionacquisition,IFRS16adoptionandfinancialdebts.

Totalcurrentliabilitiesincreased$1.9billionto$3.8billionasofJune30,2019,comparedto$1.9billionasofDecember31,2018,primarilyduetoincreasesinfinancialdebtsof$1.7billion,Tradepayablesof$218millionduetovarioustransitionagreementsandhigherspendforspinreadinessandseparation, andCurrent incometaxliabilitiesof$125millionduethetimingof taxpayments, partially offset byadecreaseinProvisionsandothercurrentliabilitiesof$43millionattributableprimarilytopaymentsforannualshort-termincentivecompensationandalegalsettlement.RefertoNote8totheCondensedConsolidatedInterimFinancialStatementsforadditionaldetailsrelatedtofinancialdebts.

Equity

Equitydecreased$3.2billionto$19.5billionasofJune30,2019,comparedtoInvestedcapital of$22.6billionasofDecember31,2018.Thedecreasewasprimarilyattributableto$3.1billionpaidtoNovartisanditsaffiliatesimmediatelypriortotheSpin-Off,asdescribedinNote3totheCondensedConsolidatedInterimFinancialStatements.

Net(debt)/liquidity(non-IFRSmeasure)Netdebtincreasedto$2.8billionasofJune30,2019comparedtonetliquidityof$152millionasofDecember31,2018.Alcon'sliquidityamountedto$722millionasofJune30,2019comparedto$227millionasofDecember31,2018,whiletotal financialdebtincreasedto$3.5billionasofJune30,2019,comparedto$75millionasofDecember31,2018.

The increase in financial debts is attributable to $3.2 billion in borrowings against bridge and other term loans and $0.3 billion in local bilateralfacilities.RefertoNotes3and8totheCondensedConsolidatedInterimFinancialStatementsforadditionalinformation.

9

Foradditionalinformationregardingnet(debt)/liquidity,whichisanon-IFRSmeasure,seetheexplanationofnon-IFRSmeasuresandreconciliationtablesinthe'SupplementaryInformation'section.

10

ALCONINC.CONDENSEDCONSOLIDATEDINTERIMFINANCIALSTATEMENTS

CONSOLIDATEDINCOMESTATEMENTS(unaudited)

    Threemonthsended   Sixmonthsended

($millionsexcept(loss)/earningspershare) Note June30,2019 June30,2018   June30,2019 June30,2018Netsalestothirdparties 4 1,863 1,819   3,640 3,598Salestoformerparent 4 — 1   — 2Otherrevenues 4 40 —   87 —

Netsalesandotherrevenues   1,903 1,820   3,727 3,600Costofnetsales   (922) (942)   (1,847) (1,855)Costofotherrevenues   (34) —   (81) —

Grossprofit   947 878   1,799 1,745Selling,general&administration   (760) (722)   (1,416) (1,375)Research&development   (167) (152)   (313) (289)Otherincome   6 62   18 81Otherexpense   (79) (28)   (189) (51)

Operating(loss)/income   (53) 38   (101) 111Interestexpense   (35) (6)   (44) (12)Otherfinancialincome&expense   (8) (8)   (16) (14)

(Loss)/incomebeforetaxes   (96) 24   (161) 85Taxes 5 (294) (9)   (338) (32)

Net(loss)/income   (390) 15   (499) 53

             

(Loss)/earningspershare

Basic 6 (0.80) 0.03   (1.02) 0.11Diluted 6 (0.80) 0.03   (1.02) 0.11             

Weightedaveragenumberofsharesoutstanding(millions)(1)

Basic 6 488.2 488.2   488.2 488.2Diluted 6 488.2 488.2   488.2 488.2(1) ForperiodspriortotheSpin-Off,thedenominatorforbasicanddilutedearningspersharewascalculatedusingthe488.2millionsharesofcommonstockdistributedin

theSpin-Off.

TheaccompanyingNotesformanintegralpartoftheCondensedConsolidatedInterimFinancialStatements.

11

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVE(LOSS)/INCOME(unaudited)

  Threemonthsended   Sixmonthsended($millions) June30,2019 June30,2018   June30,2019 June30,2018           

Net(loss)/income (390) 15   (499) 53Other comprehensive income to be eventually recycled into the consolidatedincome statement:          

Currencytranslationeffects 5 (88)   1 (40)

Totalofitemstoeventuallyrecycle 5 (88)   1 (40)Other comprehensive income never to be recycled into the consolidatedincome statement:          

Actuarial(losses)/gainsfromdefinedbenefitplans,netoftaxes(1) — 16   (7) 33

Fairvalueadjustmentsonequitysecurities,netoftaxes(2) — —   (2) —

Totalofitemsnevertoberecycled — 16   (9) 33

Totalcomprehensive(loss)/income (385) (57)   (507) 46(1) Taxexpenseof$1 million and$5 million wasrecordedinthethreemonthsendedJune30,2019and2018,respectively.Taxexpenseof$2 million and$10 million was

recordedinthesixmonthsendedJune30,2019and2018,respectively.(2) Taxbenefitsof$5 million wererecordedforthesixmonthsendedJune30,2019.No  taxeswererecordedforthethreemonthsendedJune30,2019and2018orsix

monthsendedJune30,2018.

TheaccompanyingNotesformanintegralpartoftheCondensedConsolidatedInterimFinancialStatements.

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CONSOLIDATEDBALANCESHEETS(unaudited)

($millions) Note June30,2019 December31,2018Assets      Non-currentassets      Property,plant&equipment(1)   2,887 2,800Right-of-useassets(1) 7 266 79Goodwill 4 8,905 8,899Intangibleassetsotherthangoodwill 4 10,719 10,679Deferredtaxassets   338 670Financialassets 8 357 388Othernon-currentassets   160 148

Totalnon-currentassets   23,632 23,663Currentassets      Inventories   1,489 1,440Tradereceivables   1,407 1,253Receivablesfromformerparent 11 — 20Incometaxreceivables   34 33Otherfinancialreceivablesfromformerparent 11 — 39Cashandcashequivalents   721 227Othercurrentassets   491 387

Totalcurrentassets   4,142 3,399Totalassets   27,774 27,062

       Equityandliabilities      Equity      Investedcapital   — 22,639Sharecapital   20 —Reserves   19,432 —

Totalequity   19,452 22,639Liabilities      Non-currentliabilities      Financialdebts(1) 8 1,751 —Leaseliabilities(1) 7 220 89Deferredtaxliabilities   1,408 1,528Provisions&othernon-currentliabilities   1,125 913

Totalnon-currentliabilities   4,504 2,530Currentliabilities      Tradepayables   881 663Payablestoformerparent 11 — 85Financialdebts 8 1,771 47Leaseliabilities 7 53 —Otherfinancialliabilitiestoformerparent 11 — 67Currentincometaxliabilities   276 151Provisions&othercurrentliabilities   837 880

Totalcurrentliabilities   3,818 1,893Totalliabilities   8,322 4,423Totalequityandliabilities   27,774 27,062(1) AlconadoptedIFRS16,Leases asofJanuary1,2019usingthemodifiedretrospectiveapproachasdescribedinNotes2and7totheseCondensedConsolidatedInterim

Financial Statements. Under the modified retrospective approach, comparative information was not restated. However, the December 31, 2018 balances previouslyreportedforafinanceleaseliabilityandcorrespondingassetof$89millionand$79million,respectively,havebeenreclassifiedfrom"Non-currentfinancialdebts"and"Property,Plant,&Equipment"to"Non-currentleaseliabilities"and"Right-of-useassets,"respectively,toenhancetheinter-periodcomparabilityofinformationpresented.

TheaccompanyingNotesformanintegralpartoftheCondensedConsolidatedInterimFinancialStatements.

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CONSOLIDATEDSTATEMENTSOFCHANGESINEQUITY(unaudited)

SixmonthsendedJune30,2019

($millions)ShareCapital

OtherReserves

Formerparentnetinvestment

(1)

Fairvalueadjustmentsonmarketablesecurities

Fairvalueadjustmentsonequitysecurities

Actuariallosses/gainsfromdefinedbenefit

plans

Cumulativecurrencytranslationeffects

Totalvalueadjustments(2) Equity(1)

                   

BalanceasofJanuary1 — — 22,650 — (23) (17) 29 (11) 22,639

Netloss   (390) (109) — (499)

Othercomprehensiveloss     — (2) (7) 1 (8) (8)Totalcomprehensiveloss — (390) (109) — (2) (7) 1 (8) (507)Movementsoffinancingprovidedtoformerparent,net     (2,658) — (2,658)

Othertransactionswithformerparent     (46) — (46)Reclassificationofdeferredequity-compensation     (7)         — (7)Distributionbyformerparentofsharecapital 20 19,812 (19,832)         — —

Equity-basedcompensation   28           — 28

Othermovements(3)   1 2 — 3TotalOthermovements 20 19,841 (22,541) — — — — — (2,680)BalanceasofJune30 20 19,451 — — (25) (24) 30 (19) 19,452(1) "Formerparentnetinvestment"and"Equity"werepreviouslypresentedas"Retainedearnings"and"Investedcapital",respectively,intheForm20-Fandwererenamed

upontheexecutionoftheSpin-Off.(2) "Totalvalueadjustments"recordedthroughComprehensiveIncomearepresentednetofthecorrespondingtaxeffects.(3) Activityrelatestohyperinflationaryaccounting.

SixmonthsendedJune30,2018

($millions)ShareCapital

OtherReserves

Formerparentnetinvestment

(1)

Fairvalueadjustmentsonmarketablesecurities

Fairvalueadjustmentson

equitysecurities

Actuariallosses/gainsfromdefinedbenefit

plans

Cumulativecurrencytranslationeffects

Totalvalueadjustments(2) Equity(1)

                   

BalanceasofJanuary1,aspreviouslyreported — — 22,942 25 (25) 87 87 23,029Impactofchangeinaccountingpolicies(3)     25 (25) (25) —

RestatedbalanceasofJanuary1     22,967 — — (25) 87 62 23,029Netincome — — 53 — 53

Othercomprehensiveloss     — — 33 (40) (7) (7)Totalcomprehensiveincome — — 53 — — 33 (40) (7) 46Movementsoffinancingprovidedtoformerparent,net     (288) — (288)Othertransactionswithformerparent     (59) — (59)

Othermovements(4)     — — —TotalOthermovements — — (347) — — — — — (347)BalanceasofJune30 — — 22,673 — — 8 47 55 22,728(1) "Formerparentnetinvestment"and"Equity"werepreviouslypresentedas"Retainedearnings"and"Investedcapital",respectively,intheForm20-Fandwererenamed

upontheexecutionoftheSpin-Off.(2) "Totalvalueadjustments"recordedthroughComprehensiveIncomearepresentednetofthecorrespondingtaxeffects.(3) Theimpactofchangeinaccountingpoliciesincludes$25millionrelatingtoIFRS9implementationandnilrelatingtoIFRS15implementation(seeNotes3and25tothe

CombinedFinancialStatementsintheForm20-F).(4) Activityrelatestohyperinflationaryaccounting.TheaccompanyingNotesformanintegralpartoftheCondensedConsolidatedInterimFinancialStatements.

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CONSOLIDATEDSTATEMENTSOFCASHFLOWS(unaudited)

    Sixmonthsended($millions) Note June30,2019   June30,2018         

Netincome/(loss)   (499)   53Adjustments to reconcile net income/(loss) to net cash flows from operating activities    Depreciation,amortization,impairmentsandfairvalueadjustments 9.1 709   615Equity-basedcompensationexpense   28   —Non-cashchangeinprovisionsandothernon-currentliabilities   15   25Lossesondisposalandotheradjustmentsonproperty,plant&equipmentandothernon-currentassets,net   4   —Interestexpense   44   12Otherfinancialincomeandexpense   16   14Taxes   338   32Interestreceived   1   —Interestpaid   (28)   (4)Otherfinancialpayments   (13)   (14)Taxespaid   (64)   (67)Netcashflowsbeforeworkingcapitalchangesandnetpaymentsoutofprovisionsandothernon-currentliabilities   551   666Netpaymentsoutofprovisionsandothercashmovementsinnon-currentliabilities   (68)   (54)Changeinnetcurrentassetsandotheroperatingcashflowitems 9.2 (182)   (57)

Netcashflowsfromoperatingactivities   301   555Purchaseofproperty,plant&equipment   (206)   (179)Purchaseofintangibleassets   (55)   (86)Purchaseoffinancialassets   (15)   (16)Proceedsfromsalesoffinancialassets   1   6Acquisitionofbusiness,net   (283)   —

Netcashflowsusedininvestingactivities   (558)   (275)Movementsoffinancingprovidedtoformerparent,net   (2,658)   (288)Proceedsfromnon-currentfinancialdebts,netofissuancecosts   1,745   —Proceedsfromcurrentfinancialdebts,netofissuancecosts   1,709   —Leasepayments   (22)   —Changeinotherfinancialreceivablesfromformerparent   39   (11)Changeinotherfinancialliabilitiestoformerparent   (67)   2Otherfinancingcashflows   1   (1)

Netcashflowsprovidedby/(usedin)financingactivities   747   (298)Effectofexchangeratechangesoncashandcashequivalents   4   (3)

Netchangeincashandcashequivalents   494   (21)CashandcashequivalentsatJanuary1   227   172

CashandcashequivalentsatJune30   721   151

TheaccompanyingNotesformanintegralpartoftheCondensedConsolidatedInterimFinancialStatements.

15

NOTESTOCONDENSEDCONSOLIDATEDINTERIMFINANCIALSTATEMENTSFORTHETHREEANDSIX-MONTHPERIODENDEDJUNE30,2019(unaudited)

1.Basisofpreparation

OnFebruary 28, 2019, Novartis AG(“Novartis” or “Former Parent”) shareholders at their Annual General Meeting approvedtheproposed100%spin-off of AlconInc. (“Alcon” or “the Company”) throughthedistribution of a dividend-in-kind of newAlconsharesto Novartis shareholders andNovartis American Depositary Receipt (“ADR”) holders (the “Spin-Off”), subject to completion of certain conditions precedent to the distribution.AmendmentNo.6toAlcon'sRegistrationStatementonForm20-FfiledwiththeSecuritiesandExchangeCommission("SEC")onMarch22,2019,("Form20-F"), was declared effective by the SECon that sameday. OnApril 9, 2019(the “Distribution Date”), Alcon becamean independent,publicly-tradedcompanyasaresult oftheSpin-Off andthesharesofAlconarelistedontheSIXSwissStockExchange("SIX")andontheNewYorkStockExchange("NYSE")underthesymbol“ALC”.EachNovartisshareholderofrecordasofApril8,2019andeachholderofNovartis’ADRofrecordasofApril1,2019receivedoneshareofAlconcommonstockforeveryfivesharesofNovartiscommonstockorNovartisADRheld.

These Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Accounting Standards 34,Interim Financial Reporting asissuedbytheInternational AccountingStandardsBoard("IASB") andthebasisof preparationasdescribedinthisNote1andwiththeaccountingpoliciesasdescribedinNote3oftheDecember31,2018CombinedFinancialStatementsintheCompany’sForm20-F,exceptforthechangestotheaccountingpolicyrelatedtoLeaseswhichwasupdatedasofJanuary1,2019,duetotheadoptionofthenewInternational Financial Reporting Standard ("IFRS") standard IFRS 16,Leases . The updated accounting policy is disclosed in Note 2 to theseCondensedConsolidatedInterimFinancialStatements.

These Condensed Consolidated Interim Financial Statements do not include all of the information required for a complete set of IFRS financialstatements.ThefinancialinformationconsolidatestheCompanyandthesubsidiariesitcontrols,andincludesselectednotestoexplaineventsandtransactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annualcombinedfinancialstatements.ThereforetheCondensedConsolidatedInterimFinancialStatementsshouldbereadinconjunctionwiththeannualcombinedfinancialstatementsfortheyearendedDecember31,2018,whichhavebeenpreparedinaccordancewithIFRSasissuedbytheIASB.

The accompanying Condensed Consolidated Interim Financial Statements present our historical financial position, results of operations,comprehensiveincome/(loss), andcashflowsinaccordancewithIFRS.Thecombinedfinancial statementsfor periodsprior totheSpin-Off werederived from Novartis’ consolidated financial statements and accounting records and prepared in accordance with IFRS for the preparation ofcarved-out combined financial statements. Through the date of the Spin-Off, all revenues and costs as well as assets and liabilities directlyassociated with Alcon have been included in the combined financial statements. Prior to the Spin-Off, the combined financial statements alsoincluded allocations of certain expenses for services provided by Novartis to Alcon and allocations of related assets, liabilities, and the FormerParent’s invested capital, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarilyrepresentative of the amounts that would have been reflected in the financial statements had the Company been an entity that operatedindependentlyofNovartisduringtheapplicableperiods.

AgreementsenteredintobetweenAlconandNovartisinconnectionwiththeSpin-OffgoverntherelationshipbetweenthepartiesfollowingtheSpin-Off and provide for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transitionservicestobeprovidedonatemporarybasisbetweentheparties.

FollowingtheSpin-Off,theconsolidatedfinancialstatementsincludetheaccountsoftheCompanyanditssubsidiariesandnolongerincludeanyallocationsfromNovartis.

16

2.Selectedaccountingpolicies

TheCompany'sprincipalaccountingpoliciesaresetoutinNote3totheCombinedFinancialStatementsintheForm20-FandconformwithIFRSasissuedbytheIASB.Thepresentationoffinancial statementsrequiresmanagementtomakesubjectiveandcomplexjudgmentsthataffectthereportedamounts.Becauseoftheinherentuncertainties,actualoutcomesandresultsmaydifferfrommanagement'sassumptionsandestimates.

As discussed in Note 3 to the Combined Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired In-processresearch&developmentprojectsarereviewedforimpairmentatleastannuallyandthese,aswellasallotherinvestmentsinintangibleassets,arereviewedfor impairment whenever anevent or decisionoccurs that raises concern about their balancesheet carrying value. Goodwill andotherintangible assets represent a significant amount of total assets on the Company's consolidated balance sheets. Impairment testing may lead topotentiallysignificantimpairmentchargesinthefuturewhichcouldhaveamaterially adverseimpactontheCompany'sresultsof operationsandfinancialcondition.

Financialassets

The"Financialassets"portionoftheaccountingpolicywasexpandedin2019toincludederivativeinstruments,asfollows:

Derivativefinancialinstrumentsareinitiallyrecognizedinthebalancesheetatfairvalueandareremeasuredtotheircurrentfairvalueattheendofeachsubsequentreportingperiod.Thevaluationofforwardexchangeratecontractsandforeignexchangeswapsarebasedonthediscountedcashflowmodel,usinginterestcurvesandspotratesatthereportingdateasobservableinputs.Unsettledforwardcontractsandswapsaremeasuredatfair value at month-end with changes in fair value recorded to the incomestatement as unrealized gains or losses in "Other financial income&expense".Settledforwardcontractsandswapsaremeasuredatmaturitydateatfairvaluewithcorrespondingrealizedgainsorlossesrecognizedintheincomestatementin"Otherfinancialincome&expense".Nohedgeaccountingisappliedforthesearrangements.

Otherrevenues

The "Other revenues" portion of the "Revenue recognition" accounting policy was expanded in 2019 to include accounting for the Company'scontractmanufacturingarrangementwithNovartis,asfollows:

"Otherrevenues"mainlyincluderevenuefromcontractmanufacturingservicesprovidedtotheCompany'sformerparentwhicharerecognizedovertimeastheserviceobligationsarecompleted.Associatedcostsincurredarerecognizedin"Costofotherrevenues".

Earnings(loss)pershare

"Basicearnings(loss)pershare"isbasedontheweightedaveragenumberofcommonsharesoutstanding."Dilutedearnings(loss)pershare"isbasedontheweightedaveragenumberofcommonsharesoutstandingandalldilutivepotentialcommonsharesoutstanding.

IFRS16,LeaseseffectiveasofJanuary1,2019

EffectiveJanuary1,2019,AlconimplementedIFRS16,Leases ,whichprovidesanewmodelforlesseeaccountinginwhichsubstantiallyallleasesarenowrecognizedonthebalancesheetasright-of-useassetswithcorrespondingleaseliabilities.ThestandardreplacesIAS17,Leases .Right-of-useassetsarerecognizedbasedontheamountoftheleaseliabilityadjustedforpaymentsmadebeforetheleasecommencementdate,leaseincentives and other items related to the lease agreements. Lease liabilities are recognized based on the net present value of remaining leasepayments.TheCompanyhasappliedthepracticalexpedientsdiscussedinNote7oftheseCondensedConsolidatedInterimFinancialStatementsintheadoptionofthestandard.

Uponadoptionofthenewstandard,aportionoftheannualoperatingleasecostspreviouslyfullyrecognizedasafunctionalexpenseisrecordedasinterest expense. In addition, the portion of the lease payments representing a reduction of the lease liability is recognized in the cash flowstatementasanoutflowfromfinancingactivities,whichwaspreviouslyfullyrecognizedasanoutflowfromoperatingactivitiesforoperatingleases.These effects of the adoption and impacts on the income statements and statements of cash flows are further discussed in Note 7 of theseCondensedConsolidatedInterimFinancialStatements.

IFRS16substantiallycarriesforwardthelessoraccountingrequirementsunderIAS17suchthatadoptionofthestandarddidnothaveasignificantimpactupontheCompany'saccountingforsurgicalequipmentleaseswhere

17

theCompanyisthelessorandforwhichtheCompany'saccountingpolicyisincludedinthe"Revenuerecognition"accountingpolicyinNote3totheCombinedFinancialStatementsintheForm20-F.

TheCompanyhasupdatedthefollowingaccountingpolicy,effectiveJanuary1,2019,asaresultoftheadoptionofthenewstandard:

Leases

Aslessee,theCompanyassesseswhetheracontractcontainsaleaseatinceptionofacontractbasedonwhetherthecontractconveystherighttocontrol the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and acorrespondingleaseliabilityforallarrangementsinwhichitisalessee,exceptforleaseswithatermoftwelvemonthsorless(short-termleases)andlowvalueleasesforwhichAlconhaselectedtherecognitionexemptionsallowedunderIFRS16.

Right-of-use assets

"Right-of-use assets" are initially recognized at cost, which is comprised of the amount of the initial measurement of the corresponding leaseliabilities,adjustedforanyleasepaymentsmadeatorpriortothecommencementdateofthelease,leaseincentivesreceivedandinitialdirectcostsincurred,aswellasanyexpectedcostsforobligationstodismantleandremoveRight-of-useassetswhentheyarenolongerused.

Right-of-useassetsaredepreciatedonastraight-linebasisovertheshorteroftheusefullifeoftheright-of-useassetortheendoftheleaseterm.

Right-of-useassetsareassessedforimpairmentwheneverthereisanindicationthatthebalancesheetcarryingamountmaynotberecoverableusingcashflowprojectionsfortheusefullife.

Lease liabilities

"Leaseliabilities"areaccountedforatamortizedcostandareinitiallymeasuredatthepresentvalueoffutureleasepaymentsandareclassifiedascurrent or non-current based on the due dates of the underlying principal payments. In determining the lease term, the Company evaluates therenewaloptionsandterminationoptionsreasonablycertaintobeexercised.Leasepaymentsarediscountedusingtheinterestrateimplicit intheleaseor,ifnotreadilydeterminable,theincrementalborrowingrateAlconwouldbeexpectedtopaywithintherespectivemarkets,onaborrowingwithasimilartermandsecurity.Interestintheperiodisrecordedwithin"interestexpense"intheCompany'sconsolidatedincomestatements.

Leaseliabilities areremeasuredfor changesin estimatedleaseterm, future leasepayments arisingfromachangein anindexor rate, amountsexpected to be payable under a residual value guarantee, or in assessment of whether the Company will exercise a purchase, extension ortermination option. Changes to initial lease contract terms are assessed to determine their impact on the scope of lease, and any modificationsincreasingthescopeoftheleasearetreatedasnewcontractsundertheinitialmeasurementprinciples,whilemodificationsthatdonotincreaseorthatdecreasethescopeoftheleaseresultinanadjustmenttotheRight-of-useassetwhichisremeasuredasofthedateofthemodification.

PrincipalpaymentsmadeonLeaseliabilitiesandanyinitialdirectcostspaidareclassifiedasfinancingcashoutflows,whileinterestpaymentsareclassifiedasoperatingcashoutflows.

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in theconsolidatedincomestatementandareclassifiedascashflowsfromoperatingactivities.Short-termleasesareleaseswithaleasetermoftwelvemonthsindurationorless.

3.Significanttransactions

SignificanttransactionsinthesixmonthsendedJune30,2019

Completion of Spin-Off from Novartis through a dividend in kind distribution to Novartis shareholders

TheSpin-OffwasexecutedonApril9,2019asdescribedinNote1.ThebelowtransactionsoccurredinApril2019,immediatelyprecedingtheSpin-Off.

18

OnApril2,2019,Alconborrowed$3.2billionagainstthebridgeandothertermloanswhichwereexecutedonMarch6,2019andaredescribedintheForm20-FandNote8oftheseCondensedConsolidatedInterimFinancialStatements.TheseborrowingsincreasedtheCompany'sthirdpartyfinancial debtsto$3.5billion. Throughaseriesof intercompanytransactions, Alconlegal entitiesthenpaidapproximately$3.1billionincashtoNovartisanditsaffiliatespriortotheSpin-Off,decreasingAlcon'snetassetstoapproximately$20.0billionatthedateofSpin-Off.

Surgical-Acquisition of PowerVision, Inc.

OnMarch13, 2019, Alconacquired100%of theoutstandingsharesandequity of PowerVision, Inc. ("PowerVision"), aprivately-held, US-basedcompanyfocusedondevelopingaccommodative,implantableintraocularlenses.Thistechnologyallowstheintraocularlenstorespondtonaturalmuscularmovementsintheeyetoaltershapeandfocus.ThePowerVisionacquisitionwasexecutedaspartofAlcon'scommitmenttoinnovationinadvancedtechnologyintraocularlenses("AT-IOLs").

Thefairvalueofthetotalpurchaseconsiderationwas$424million.Thisamountconsistedofaninitialcashpaymentof$289millionandthefairvalueoftheprobabilityweightedcontingentconsiderationof$135millionduetoPowerVisionshareholders,whichtheyareeligibletoreceiveuponthe achievement of specified regulatory and commercialization milestones. The preliminary purchase price allocation resulted in net identifiableassetsof$418million,whichconsistedofIn-processresearch&developmentintangibleassetsof$505million,anetdeferredtaxliabilityof$93million,othernetassetsof$6million.Goodwillof$6millionwasalsorecognizedwhichisattributabletotheassembledworkforce.Cashpaidfortheacquisition,netofcashacquired,was$283million.The2019resultsofoperationssincethedateofacquisitionandtransactioncostsfortheacquisitionwerenotmaterial.

Significanttransactionsin2018

Surgical-Acquisition of TrueVision Systems, Inc.

OnDecember19,2018,Alconacquired100%oftheoutstandingsharesandequityofTrueVisionSystems,Inc.("TrueVision"),aprivatelyheldUSbased company. TrueVision developed the 3D scope technology currently used in the commercially marketed Alcon productNGENUITY .Thistechnology allows retina surgery specialists to have a 3D visualization of the back of the eye with greater depth and detail than traditionalmicroscopes.

Thefairvalueofthetotalpurchaseconsiderationamountedto$146million.Thisamountconsistsofaninitialcashpaymentof$110millionandthefairvalueoftheprobabilityweightedcontingentconsiderationof$36millionduetoTrueVisionshareholders,whichtheyareeligibletoreceiveuponthe achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of$144 million , which consisted of intangible assets of $172 million , net deferred tax liability of $29 million and other net assets of $1 million .Goodwillof$2millionwasalsorecognizedwhichisattributabletotheassembledworkforce.The2018resultsofoperationsfollowingthedateofacquisitionwerenotmaterial.

Vision Care-Acquisition of Tear Film Innovations, Inc.

OnDecember17,2018,Alconacquired100%oftheoutstandingsharesandequityofTearFilmInnovations,Inc.("TearFilm"),aprivatelyheldUSbasedcompany.TearFilmisthemanufactureroftheiLux®Device,aninnovativetherapeuticdeviceusedtotreatMeibomianGlandDysfunction,aleading cause of dry eye. The fair value of the total purchase consideration amounted to $145million . This amount consists of an initial cashpaymentof$79millionandthefairvalueoftheprobabilityweightedcontingentconsiderationof$66millionduetoTearFilmpreviousowners,whichthey are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocationresultedinnetidentifiableassetsof$143million,whichconsistedofintangibleassetsof$174million,netdeferredtaxliabilityof$37million,cashof$5millionandothernetassetsof$1million.Goodwillof$2millionwasalsorecognizedwhichisattributabletotheassembledworkforce.The2018resultsofoperationsfollowingthedateofacquisitionwerenotmaterial.

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4.Segmentationofkeyfigures

The segment information disclosed in these Condensed Consolidated Interim Financial Statements reflects historical results consistent with theidentifiable reporting segments of the Company and financial information that the Chief Operating Decision Maker (CODM) reviews to evaluatesegmentalperformanceandallocateresourcesamongthesegments.TheCODMistheExecutiveCommitteeofAlcon.

The businesses of Alcon are divided operationally on a worldwide basis into two identified reporting segments, Surgical and Vision Care. Asindicatedbelow,certainincomeandexpensesarenotallocatedtosegments.

ReportingsegmentsarepresentedinamannerconsistentwiththeinternalreportingtotheCODM.Thereportingsegmentsaremanagedseparatelyduetotheirdistinctneedsandactivitiesforresearch,development,manufacturing,distribution,andcommercialexecution.

TheExecutiveCommitteeofAlconisresponsibleforallocatingresourcesandassessingtheperformanceofthereportingsegments.

InSurgical,theCompanyresearches,develops,manufactures,distributesandsellsophthalmicproductsforcataractsurgery,vitreoretinalsurgery,refractivelasersurgeryandglaucomasurgery.Thesurgicalportfolioalsoincludesimplantables,consumablesandsurgicalequipmentrequiredfortheseproceduresandsupportstheend-to-endprocedureneedsoftheophthalmicsurgeon.

In Vision Care, the Company researches, develops, manufactures, distributes and sells daily disposable, reusable, and color-enhancing contactlensesandacomprehensiveportfolio of ocular healthproducts, includingproductsfor dryeye, contact lenscareandocular allergies, aswell asocularvitaminsandrednessrelievers.

Alconalsoprovidesservices,training,educationandtechnicalsupportforboththeSurgicalandVisionCarebusinesses.

ThebasisofpreparationdescribedinNote1,andtheselectedaccountingpoliciesmentionedinNote2oftheseCondensedConsolidatedInterimFinancialStatements,areusedinthereportingofsegmentresults.

TheExecutiveCommitteeof Alconevaluatessegmental performanceandallocatesresourcesamongthesegmentsprimarily basedonnet salesandsegmentcontribution.

Net identifiable assets are not assigned to the segments in the internal reporting to the CODM, and are not considered in evaluating theperformanceofthebusinesssegmentsbytheExecutiveCommitteeofAlcon.

Segment contribution excludes amortization and impairment costs for acquired product rights or other intangibles, general and administrativeexpensesforcorporateactivities,andcertainotherincomeandexpenseitems.

General&administration(corporate)includesthecostsoftheAlconcorporateheadquarters,includingallrelatedcorporatefunctioncosts.Forthehistoricalcomparativeperiodonly,therelatedcorporatefunctioncostswereallocatedtoAlconfromitsformerparent.

Otherexpense,netofotherincome,includesotheritemsofincomeandexpensesuchasseparationcosts,restructuringcostsandlegalsettlementsthatarenotattributabletoaspecificsegment.

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Segmentation-Consolidatedincomestatements

Three months ended June 30, 2019 and 2018

Surgical   VisionCare   Company($millions) June30,2019 June30,2018   June30,2019 June30,2018   June30,2019 June30,2018Netsalestothirdparties 1,051 1,030   812 789   1,863 1,819Salestoformerparent — 1   — —   — 1Otherrevenues — —   40 —   40 —Netsalesandotherrevenue 1,051 1,031   852 789   1,903 1,820Segmentcontribution 217 219   135 131   352 350Amortizationofintangibleassets     (270) (258)Impairmentchargesonintangibleassets     — (39)General&administration(corporate)     (62) (49)Other(expense)/income,net     (73) 34Operating(loss)/income     (53) 38Interestexpense     (35) (6)Otherfinancialincome&expense     (8) (8)(Loss)/Incomebeforetaxes     (96) 24

Six months ended June 30, 2019 and 2018

Surgical   VisionCare   Company($millions) June30,2019 June30,2018   June30,2019 June30,2018   June30,2019 June30,2018Netsalestothirdparties 2,051 2,007   1,589 1,591   3,640 3,598Salestoformerparent — 2   — —   — 2Otherrevenues — —   87 —   87 —Netsalesandotherrevenues 2,051 2,009   1,676 1,591   3,727 3,600Segmentcontribution 440 422   282 314   722 736Amortizationofintangibleassets             (536) (516)Impairmentchargesonintangibleassets             — (39)General&administration(corporate)             (116) (100)Other(expense)/income,net             (171) 30Operating(loss)/income             (101) 111Interestexpense             (44) (12)Otherfinancialincome&expense             (16) (14)(Loss)/Incomebeforetaxes             (161) 85

Segmentation-Additionalbalancesheetdisclosure

Surgical   VisionCare   Notallocated(1)   Total

($millions)Jun30,2019

Dec31,2018  

Jun30,2019

Dec31,2018  

Jun30,2019

Dec31,2018  

Jun30,2019

Dec31,2018

Goodwill 4,544 4,538   4,361 4,361   — —   8,905 8,899Intangibleassetsotherthangoodwill 6,181 6,053   1,558 1,646   2,980 2,980   10,719 10,679

(1) Alconbrandname.

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Netsalesbysegment

  Threemonthsended   Sixmonthsended($millions) June30,2019 June30,2018   June30,2019 June30,2018Implantables 300 298   585 577Consumables 588 578   1,139 1,119Equipment/other 163 154   327 311TotalSurgical 1,051 1,030   2,051 2,007   Contactlenses 493 478   991 987Ocularhealth 319 311   598 604TotalVisionCare 812 789   1,589 1,591           

Netsalestothirdparties 1,863 1,819   3,640 3,598

Netsalesbyregion(1)

  Threemonthsended   Sixmonthsended($millionsunlessindicatedotherwise) June30,2019 June30,2018   June30,2019 June30,2018UnitedStates 779 42% 750 41%   1,516 42% 1,462 41%International 1,084 58% 1,069 59%   2,124 58% 2,136 59%Netsalestothirdparties 1,863 100% 1,819 100%   3,640 100% 3,598 100%(1)Netsalestothirdpartiesbylocationofthird-partycustomer.

5.Incometaxes

On June 30, 2019, Swiss voters approved the Swiss Tax Reform and Old Age Insurance financing bill ("Swiss tax reform"). As a result, thecorporateincometaxrateapplicabletoAlcon’sSwissprofitsasofJanuary1,2020willincreasefromapproximately9.4%in2019toapproximately14.2% beginning in 2020. This change resulted in a non-cash increase in tax expense of $301million related to the re-measurement of SwissdeferredtaxassetsandliabilitiesasofJune30,2019andisincludedasadiscretetaxexpenseitem.

6.Earnings/(Loss)pershare

OnApril9,2019,thedateoftheSpin-Off,488.2millionsharesoftheCompany'sCommonStockweredistributedtoNovartisshareholdersandNovartisAmericanDepositaryReceipt(“ADR”)holders.NodividendswerepaidfromApril9,2019throughJune30,2019.

Basicearnings/(loss)pershareiscomputedbydividingtheCompany'snet(loss)/incomefortheperiodbytheweightedaveragenumberofcommonshares outstanding during the period. For both the three and six month periods ended June 30, 2019, the weighted average number of sharesoutstandingwas488.2millionshares.ForperiodspriortotheSpin-Off, thedenominatorforbasicearningspershareusesthenumberofsharesdistributedonthedateoftheSpin-Off.

TheCompany'sonlypotentiallydilutivesecuritiesaretheoutstandingunvestedequity-basedawards,asdescribedinNote10totheseCondensedConsolidated Interim Financial Statements. Except when the effect would be anti-dilutive, the calculation of diluted earnings per common shareincludestheweightedaveragenetimpactofunvestedequity-basedawards.ForthethreeandsixmonthperiodsendedJune30,2019,1.8millionand0.9millionshares,respectively,relatedtounvestedequity-basedawardshavebeenexcludedfromthecalculationofdilutednetlosspershareastheir effect wouldbeanti-dilutive. ForperiodspriortotheSpin-Off, thedenominatorfordilutedearningspershareusesthenumberofsharesdistributedonthedateoftheSpin-Off.

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7.Right-of-useassetsandLeaseliabilities

Alcon adopted IFRS 16,Leases effective January 1, 2019, as described in Notes 1 and 2 to these Condensed Consolidated Interim FinancialStatements.

TheCompanyhasappliedthemodifiedretrospectivemethod,withright-of-useassetsmeasuredatanamountequaltotheleaseliability,adjustedbytheamountoftheprepaidoraccruedleasepaymentsrelatingtothoseleasesrecognizedinthebalancesheetimmediatelybeforethedateofinitialapplication.

In applying IFRS 16 for the first time, the Company has used the following practical expedients on a lease by lease basis as permitted by thestandard:

• contractspreviouslyidentifiedasleasesbyapplyingIAS17,Leases andIFRIC4,Determining whether an Arrangement contains a Lease ,havenotbeenre-assessedunderIFRS16,

• leaseswitharemainingleasetermlessthan12monthsfromthedateofadoptionandleasesoflow-valueassetshavenotbeenrecognizedasright-of-useassetsandleaseliabilities,

• measurementofright-of-useassetsatthedateofadoptionexcludedtheinitialdirectcosts,and

• useofhindsightindeterminingtheleasetermforcontractscontainingoptionstoextendorterminatethelease.

Theadoptionofthestandarddidnothaveanimpactonretainedearningsintheperiodofadoptionandprioryearswerenotrestated.However,theDecember31,2018balancespreviouslyreportedforafinanceleaseliabilityandcorrespondingassetof$89millionand$79million,respectively,have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-useassets," respectively, to enhance the inter-period comparability of information presented. The sections below provide the quantitative impacts ofadoptionontheCompany'sbalancesheetandincomestatement.

Right-of-use assets

Right-of-useassetsasofJanuary1,2019werecomprisedofthefollowing:

($millions) January1,2019Land 20Buildings 226Machinery&equipmentandotherassets 33Totalright-of-useassets(1)(2) 279(1) Right-of-useassetsof$79millionassociatedwithprioryearfinanceleaseswereincludedwithinProperty,plantandequipmentasofDecember31,2018as

disclosedinNote8totheCombinedFinancialStatementsintheForm20-F.(2) Right-of-useassets,relatedtooperatingleasesatthedateofimplementationofIFRS16,werehigherthantheleaseliabilitiesatthedateofimplementation

ofIFRS16by$3million,duetothenetimpactofprepaymentsandaccruedleasepaymentsrecognizedatDecember31,2018.Thisimpactwasoffsetbytheleaseliabilityrelatedtothefinanceleaseexceedingthecorrespondingcapitalassetby$10million.

Lease liabilities

Leaseliabilitiesof$286millionwererecordedonJanuary1, 2019,includingthe$89millionfinanceleasepreviously presentedasanon-currentfinancial debt on the Company's Combined Balance Sheets as of December 31, 2018, as disclosed in Note 15 to the Combined FinancialStatementsintheForm20-F.

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ThereconciliationofleasecommitmentsdisclosedasofDecember31,2018andleaseliabilityrecordedonJanuary1,2019isasfollows:

($millions)  

OperatingleasecommitmentsasofDecember31,2018(1) 222Effectofdiscounting (21)Operatingleasesdiscountedusingtheincrementalborrowingrate(2) 201FinanceleaseliabilitiesrecognizedasofDecember31,2018 89Recognitionexemptionforshorttermandlow-valueleases (4)LeaseliabilityasofJanuary1,2019 286(1) AsreportedinNote23totheCombinedFinancialStatementsintheForm20-F.(2) Weightedaverageincrementalborrowingrateof2.9%wasappliedatJanuary1,2019,thedateofimplementationofIFRS16,Leases .

Right-of-useassets

Right-of-useassetsasofJune30,2019of$266millionwerecomprisedofthefollowing:

($millions)Balanceat

June30,2019Land 21Buildings 217Machinery&equipmentandotherassets 28Total 266

Depreciationchargesof$15millionand$29millionforthethreeandsixmonthsendedJune30,2019areshowninthetablebelowbyunderlyingclassofasset:

($millions)  Threemonthsended

June30,2019  SixmonthsendedJune30,2019

Land   —     1Buildings   10     19Machinery&equipmentandotherassets   5     9Total   15     29

Additionstoright-of-useassetsamountedto$16millionforthesixmonthsendedJune30,2019.

Leaseliabilities

Lease liabilities totaled$273millionas ofJune 30, 2019 , including$53million in current lease liabilities and$220million in non-current leaseliabilities.ThematurityanalysisoftheleaseliabilityasofJune30,2019,isasfollows:

($millions) June30,2019Lessthanoneyear 53Betweenoneandtwoyears 37Betweentwoandthreeyears 32Betweenthreeandfouryears 26Betweenfourandfiveyears 15Afterfiveyears 110Totalleaseliabilities 273

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Additionaldisclosures

Thefollowingtableprovidesadditionaldisclosuresrelatedtoright-of-useassetsandleaseliabilities:

    Threemonthsended   Sixmonthsended($millions)   June30,2019   June30,2019Interestexpenseonleaseliabilities   3     5Expenseonshort-termandlowvalueleases   1     2Totalcashoutflowsforleases   12     24

Thereof: Repayment of lease liabilities   11     22

8.Financialinstruments

Fairvaluebyhierarchy

As required by IFRS, financial assets and liabilities recorded at fair value in the Condensed Consolidated Interim Financial Statements arecategorizedbaseduponthelevelofjudgmentassociatedwiththeinputsusedtomeasuretheirfairvalue.Therearethreehierarchicallevels,basedonanincreasingamountofsubjectivityassociatedwiththeinputstoderivefairvaluefortheseassetsandliabilities,whichareasfollows:

AssetsandliabilitiescarriedatLevel1fairvaluehierarchyarelistedinactivemarkets.

AssetsandliabilitiescarriedatLevel2fairvaluehierarchyarevaluedusingcorroboratedmarketdata.

Asof June30, 2019, therewerenofinancial assets or liabilitiescarriedat Level 1fair value, andLevel 2financial assets andliabilities includedderivativefinancial instruments. Asof December31, 2018, therewerenofinancial assetsor liabilitiescarriedat Level 1fair valueorLevel 2fairvalue.

Level3inputsareunobservablefortheassetorliability.TheassetsandliabilitiesgenerallyincludedinLevel3fairvaluehierarchyarelong-termfinancial investments measured at fair value through Other comprehensive income ("FVOCI"), a fund investment and contingent considerationcarriedatfairvalue.

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Thebelowtablessummarizeassetsandliabilitiesmeasuredatfairvalueonarecurringbasisoratamortizedcost.

  June30,2019

($millions) Level1 Level2 Level3

Valuedatamortizedcostor

cost(2) Total

Non-currentfinancialassets          Long-termfinancialinvestmentsmeasuredatFVOCI — — 22 — 22Fundinvestments — — 25 — 25Long-termreceivablesfromcustomers — — — 147 147Non-currentminimumleasepaymentsfromfinanceleaseagreements — — — 82 82Long-termloans,advances,securitydepositsandwarrantoptions — — — 81 81Totalnon-currentfinancialassets — — 47 310 357

Currentfinancialassets(1)          Currentportionoflong-termreceivablesfromcustomers — — — 131 131Minimumleasepaymentsfromfinanceleaseagreements — — — 53 53Otherreceivables,securitydepositsandcurrentassets — — — 145 145VATreceivables — — — 67 67Derivativefinancialinstruments — 1 — — 1Totalcurrentfinancialassets — 1 — 396 397Totalfinancialassetsatfairvalueandamortizedcostorcost — 1 47 706 754

Financialliabilities          Contingentconsiderationpayables — — (293) — (293)Non-currentfinancialdebt — — — (1,751) (1,751)Currentfinancialdebt — — — (1,759) (1,759)Derivativefinancialinstruments — (12) — — (12)Totalfinancialliabilitiesatfairvalueandamortizedcost — (12) (293) (3,510) (3,815)(1)CurrentfinancialassetsreferencedintheabovetablearerecordedinOthercurrentassets.(2)Carryingamountisareasonableapproximationoffairvalue.

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  December31,2018

($millions) Level1 Level2 Level3

Valuedatamortizedcostor

cost(2) Total

Non-currentfinancialassets          Long-termfinancialinvestmentsmeasuredatFVOCI — — 19 — 19Fundinvestments — — 27 — 27Long-termreceivablesfromcustomers — — — 164 164Non-currentminimumleasepaymentsfromfinanceleaseagreements — — — 91 91Long-termloans,advances,securitydepositsandwarrantoptions — — — 87 87Totalnon-currentfinancialassets — — 46 342 388

Currentfinancialassets(1)          Currentportionoflong-termreceivablesfromcustomers — — — 133 133Minimumleasepaymentsfromfinanceleaseagreements — — — 57 57Otherreceivables,securitydepositsandcurrentassets — — — 83 83VATreceivables — — — 68 68Derivativefinancialinstruments — — — — —Totalcurrentfinancialassets — — — 341 341Totalfinancialassetsatfairvalueandamortizedcostorcost — — 46 683 729

Financialliabilities          Contingentconsiderationpayables — — (162) — (162)Non-currentfinancialdebt — — — — —Currentfinancialdebt — — — (47) (47)Derivativefinancialinstruments — — — — —Totalfinancialliabilitiesatfairvalueandamortizedcost — — (162) (47) (209)(1)CurrentfinancialassetsreferencedintheabovetablearerecordedinOthercurrentassets.(2)Carryingamountisareasonableapproximationoffairvalue.

ThecarryingamountisareasonableapproximationoffairvalueforallotherfinancialassetsandliabilitiesasofJune30,2019,includingCash&cashequivalents,Tradereceivables,Incometaxreceivables,andTradepayables.

TherewerenotransfersoffinancialinstrumentsbetweenlevelsinthefairvaluehierarchyduringthesixmonthsendedJune30,2019.

Level3financialinstrumentsmeasuredatfairvalueonarecurringbasis

Financial assets

   

Long-termfinancialinvestmentsmeasuredatFVOCI   Fundinvestment

($millions)   2019 2018   2019 2018

BalanceasofJanuary1(1)   19 26   27 25Additions   8 11   — —Cashreceiptsandpayments   — —   — (5)Gains/(losses)recognizedinconsolidatedstatementofcomprehensiveincome   (7) —   — —Unrealizedgains/(losses)inincomestatement   — —   (2) 49Reclassification   2 5   — —

BalanceasofJune30   22 42   25 69(1)January1,2018balancesreflectedinthistableareasadjustedforadoptionofIFRS9,Financial Instruments .

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Financial liabilities

    Contingentconsiderationliabilities($millions)   2019   2018BalanceasofJanuary1   (162)   (113)Additions   (135)   —Accretionforpassageoftime   (9)   (10)Adjustmentsforchangeinassumptions   13   —Payments   —   —

BalanceasofJune30   (293)   (123)

Contingent consideration additions of $135million relate to the acquisition of PowerVision, Inc. in March 2019 as described in Note 3 of theseCondensedConsolidatedInterimFinancialStatements.Adjustmentsforchangesinassumptionsof$13millionareprimarilyrelatedtotheexpectedtiming of settlement for development milestones. As of June 30, 2019, the maximum remaining potential payments related to contingentconsiderationfrombusinesscombinationsis$630millionplusotheramountscalculatedasapercentageofcommercialsalesincaseswherethereisnotaspecifiedmaximumcontractualpaymentamount.

Changesinthecontingentconsiderationliabilitybalanceforthesameperiodinprioryearincluded$10millioninInterestexpenseforaccretionoftheliabilityduetothepassageoftime.

Contingentconsiderationliabilitiesarereportedin“Provisions&othernon-currentliabilities"and"Provisions&othercurrentliabilities”basedontheprojectedtimingofsettlementwhichisestimatedtorangefrom2020through2029forcontingentconsiderationobligationsasofJune30,2019.

FinancialDebts

The below table summarizes current and non-current Financial debts outstanding as of June 30, 2019 andDecember 31, 2018 . The belowFinancialdebtsaremeasuredatamortizedcosts.

($millions)   June30,2019   December31,2018

Non-currentfinancialdebts        FacilityA   498   —FacilityB   792   —FacilityC   396   —Localfacilities(Japan)   65   —Revolvingfacility   —   —

Totalnon-currentfinancialdebts   1,751   —         

Currentfinancialdebts        BridgeFacility   1,496   —Localfacilities:        Japan   86   —Allothers   129   32

Othershort-termfinancialdebts   48   15Derivatives   12   —

Totalcurrentfinancialdebts   1,771   47Totalfinancialdebts   3,522   47

Alcon entered into the below borrowing arrangements in connection with the Spin-Off, as described in the Form 20-F and Note 3 to theseCondensedConsolidatedInterimFinancialStatements.InterestexpenserecognizedforFinancialdebtswas$27millionand$31millioninthethreeandsixmonthsendedJune30,2019.

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Bridge Loan, Term Loan, and Revolving Credit Facilities

OnMarch6,2019,theCompanyenteredintoa$1.5billionunsecured364-daybridgeloanfacilitywithtwoextensionoptions,eachforaperiodof180days(the"BridgeFacility"),a$0.5billionunsecuredthree-yeartermloanfacility("FacilityA"),a$0.8billionunsecuredfive-yeartermloanfacility("Facility B"), a $0.4 billion (or the equivalent in EUR) unsecured five-year term loan facility ("Facility C") and a $1 billion unsecured five-yearcommittedmulticurrencyrevolvingcreditfacility(the"RevolvingFacility"and,togetherwiththeBridgeFacility,FacilityA,FacilityBandFacilityC,the"Facilities").OnApril2,2019,Alconborrowed$3.2billionagainstthebridgeandothertermloans.TheRevolvingFacilitywasundrawnasofJune30,2019.

TheFacilities bear interest rates equal to theinterest rate benchmark (prevailing EuroInterbankOffered Rate(“EURIBOR”) in thecaseof loansdenominatedinEUR,USDprevailingLondonInterbankOfferedRate(“LIBOR”)inthecaseofloansdenominatedinUSDandCHFLIBORinthecaseofloansdenominatedinCHF),plusanapplicablemargin.

TheCompanyandcertainofitssubsidiariesaretheborrowersundertheFacilitiesandtheCompanyguaranteestheborrowingsofsuchsubsidiariesundertheFacilities.Inaddition,theRevolvingFacilityincludesamechanismthroughwhichcertainsubsidiaries,asapprovedbythelenders,canaccedeasaborrower.

TheCompanyispermittedtovoluntarilyprepayloansundertheFacilities,inwholeorinpart,withoutpenaltyorpremiumsubjecttocertainminimumprepayment amounts and the payment of accrued interest on the amount prepaid and customary breakage costs. The Bridge Facility has amandatoryprepaymentprovision,pursuanttowhichtheCompanywouldhavetoapplyproceedsfromrelevantdebtcapitalmarketstransactionsinprepaymentundertheBridgeFacility.

The terms of the Facilities include certain events of default and covenants customary for investment grade credit facilities, including restrictivecovenantsthatwilllimit,amongotherthings,thegrantorincurrenceofsecurityinterestsoveranyoftheCompany’sassets,theincurrenceofcertainindebtednessandentryintocertainfundamentalchangetransactions.TheFacilitiesdonotcontainanyfinancialcovenants.

Local Bilateral Facilities

InFebruary2019,theCompanyenteredintoanumberoflocalbilateralfacilitiesindifferentcountries,withthelargestshareofborrowingsinJapan.Atotalof$0.3billionwasdrawnincluding$0.1billionintwolinesforJapan.Alllocalbilaterallinesareclassifiedascurrentwithamaturitydateinoneyearorless,withtheexceptionofonelineinJapanwithamaturitydatein2021whichisclassifiedasnon-current.

Derivatives

As of June 30, 2019, the net value of hedging positions for derivative forward contracts and swaps was $11 million , including $1 million ofunrealizedgainsinOthercurrentassetsand$12millionofunrealizedlossesinCurrentfinancialdebts.Amasternettingagreementwasexecutedforderivativesfinancialinstruments,however,therewerenoderivativefinancialinstrumentsmeetingtheoffsettingcriteriaunderIFRSasofJune30,2019.TheCompanydidnotholdderivativefinancialinstrumentsasofDecember31,2018.

Natureandextentofrisksarisingfromfinancialinstruments

Note 24 to the Combined Financial Statements in the Form 20-F contains a summary of the nature and extent of risks arising from financialinstruments.The"Foreigncurrencyexchangeraterisk"portionoftheriskmanagementpolicyhasbeenupdatedbelowtoreflecttheCompany'suseofderivativefinancialinstruments.TherehavebeennoothersignificantchangesintheriskmanagementpoliciessincethedateoftheForm20-F.

Foreign currency exchange rate risk

TheCompanyusestheUSDollarasitsreportingcurrencyandisthereforeexposedtoforeigncurrencyexchangemovements,primarilyinEuro,JapaneseYen,ChineseRenminbiandemergingmarketcurrencies.FluctuationsintheexchangeratebetweentheUSDollarandothercurrenciescanhaveasignificanteffectonboththeCompany’sresultsofoperations,includingreportedsalesandearnings,aswellasonthereportedvalueofourassets,liabilitiesandcashflows.This,inturn,maysignificantlyaffectthecomparabilityofperiod-to-periodresultsofoperations.

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The Company manages its global currency exposure by engaging in hedging transactions where management deems appropriate (forwardcontractsandswaps). Specifically, Alconentersintovariouscontractsthatreflect thechangesinthevalueofforeigncurrencyexchangeratestopreservethevalueofassets.

9.Condensedconsolidatedstatementsofcashflows-additionaldetails

ThebelowtablesprovideadditionaldetailsupportingselectlineitemsintheCondensedConsolidatedStatementsofCashFlows.

9.1Depreciation,amortization,impairmentsandfairvalueadjustments

    Sixmonthsended($millions)   June30,2019   June30,2018         

Property,plant&equipment   129   119Right-of-useassets   29   —Intangibleassets   536   555Financialassets   15   (59)Total   709   615

9.2Changeinnetcurrentassetsandotheroperatingcashflowitems

    Sixmonthsended($millions)   June30,2019   June30,2018         

(Increase)ininventories   (57)   (94)(Increase)intradereceivables   (122)   (94)Increaseintradepayables   134   47Netchangeinothercurrentassets   (73)   74Netchangeinothercurrentliabilities   (64)   10Total   (182)   (57)

10.Equity-basedcompensation

OnApril 9, 2019the Companyadoptedvarious equity incentive plans, under which the Companymaygrant awards in the formof performancestockunits("PSUs"),restrictedstockawards("RSAs"),restrictedstockunits("RSUs"),stockappreciationrights("SARs"),stockoptionsoranyotherformofawardatthediscretionoftheBoard.CertainemployeesoutsidetheUnitedStatesalsomayparticipateinshareownershipsavingsplans.

Replacementawards

AsdescribedinNote21totheCombinedFinancialStatementsintheForm20-F,priortoSpin-Off,AlconassociatesparticipatedinNovartis’equity-basedparticipationplans,whichincludedstockoptions,restrictedstockunits,performance-basedrestrictedstockunitsandcertainsharesavingsownership plans. Awards granted under these plans consisted of Novartis AGrestricted shares, restricted share units, performance share units,Novartis AGtradableshareoptions, Novartis AGAmericanDepositoryReceipt options, commonsharesor cash-settledawards. TheCondensedConsolidated Income Statements reflect the compensation expense for the Novartis’ equity-based incentive plans in which the Company'semployeesparticipatedfortheperiodspriortotheSpin-Off.

Concurrent with the Spin-Off, certain outstanding Novartis awards granted to Alcon associates under Novartis’ equity incentive plans vested inNovartisequityonaproratabasis,inproportiontotheamountofvestingperiod

30

completed; the remaining Novartis awards were replaced with Alcon awards that have terms and vesting schedules substantially similar to thereplacedNovartisawards.

TheproratavestingofNovartisawardsandreplacementofunvestedNovartisawardswithAlconawardsrepresentsamodificationunderIFRS2,Share-based Payment .Alconmeasuredthefairvalueoftheawardsimmediatelypriortoandsubsequenttothemodificationandconcludedthatnoincremental fair value was provided to employees. Accordingly, Alcon will continue to recognize as an expense the amount of unrecognizedcompensation cost of the original awards over the remaining vesting periods. TheCompanyissued4.2 millionunvestedequity-basedawardsinconnectionwiththemodificationatthetimeofSpin-Offandgrantedanother0.6millionunvestedequity-basedawardssubsequenttotheSpin-Off,resultingin4.8millionunvestedequity-basedAlconawardsoutstandingasofJune30,2019.

11.Relatedpartiestransactions

Prior to the Distribution, the Alcon business was a segment of Novartis such that transactions with Novartis were considered related partytransactions. In connection with the separation, Alconentered into a separation anddistribution agreement as well as various other agreementsgoverningrelationshipswithNovartisgoingforward,includingmanufacturingandsupply,transitionalservices,taxmatters,employeematters,andpatentandknow-howlicenseandbrandlicenseagreements.InformationincludedinthisNote11withrespecttoNovartisisstrictlylimitedtorelatedpartytransactionswithNovartispriortotheSpin-OffonApril9,2019.

TransactionswithNovartis(uptoApril9,2019)

Transactions from trading activities related to products and services invoiced between other Novartis Group companies and the Company'sbusiness, have been retained in the historical condensed consolidated financial statements. The ultimate controlling parent of both, the otherNovartisGroupcompaniesandtheCompany'sbusiness,wasNovartisAGuntiltheSpin-Off.

  Threemonthsended   Sixmonthsended

($millions)June30,2019

(1) June30,2018  June30,2019

(1) June30,2018SalesfromtheCompanytoformerparent — 1   — 2Contractmanufacturingrevenuesfromformerparent — —   47 —PurchasesoftheCompanyfromformerparent — 1   19 2

($millions) December31,2018(1)

Tradeandotherreceivablesfromformerparent 20Tradeandotherpayablestoformerparent 85Otherfinancialreceivablesfromformerparent 39Otherfinancialliabilitiestoformerparent 67(1) ActivitypresentedstrictlyrelatestotheperiodduringwhichNovartiswasarelatedparty(uptoApril9,2019).

Sales to and purchases from former parent

Beginning in 2019, product sales to Novartis are recorded in "Other revenues" in line with the Company's contract manufacturing arrangementexecuted with Novartis. Other revenues in 2019 prior to the Spin-Off were$47million . Purchases of products fromNovartis under the contractmanufacturingarrangementtotaled$19millionin2019priortotheSpin-Off.

Other financial receivables and payables related to former parent

Prior to the Spin-Off the majority of Alcon's subsidiaries were party to Novartis cash pooling arrangements with several financial institutions tomaximizetheavailabilityofcashforgeneraloperatingandinvestingpurposes.Underthesecashpoolingarrangements,cashbalancesweresweptbyNovartisregularlyfromtheCompany'sbankaccounts,andthenetpositionwiththeNovartiscashpoolingaccountsattheendofeachreportingperiodwasreflectedincombinedbalancesheetin"OtherfinancialreceivablesfromNovartisGroup"or"OtherfinancialliabilitiestoNovartisGroup".ThesecashpoolingarrangementswereeliminatedduringthethreemonthsendedMarch31,2019inanticipationoftheSpin-Offandreplacedwiththirdpartyfinancingarrangementsasneeded.

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NovartisBusinessServices("NBS")Charges,CorporateOverheadandOtherAllocationsfromNovartis

In2018andprior,NovartisGroupprovidedtheCompanycertainservicesfromNBS,thesharedserviceorganizationofNovartisGroup,acrossthefollowing service domains: human resources operations, real estate and facility services, including site security and executive protection,procurement,informationtechnology,commercialandmedicalsupportservicesandfinancialreportingandaccountingoperations.TheCondensedConsolidatedInterimFinancialStatementsincludetheappropriatecostsrelatedtotheservicesrendered,withoutprofitmargin,inaccordancewiththehistoricalarrangementsthatexistedbetweentheAlconbusinessandNBS.

Further,certaingeneralandadministrativecostsofNovartisGroupwerenotchargedorallocatedtotheAlconbusinessinthepast.Forthepurposeofthe2018financialstatements,suchcostswereallocatedbasedonreasonableassumptionsandestimates,basedonthedirectandindirectcostsincurredtoprovidetherespectiveservice.Whenspecificidentificationwasnotpracticable,aproportionalcostmethodwasused,primarilybasedonsales,orheadcount.

These NBS charges, corporate overhead and other allocations amounted to $140 million and $276 million in the three and sixmonths endedJune30,2018.

During2018,Alconformeditsownbusinessandcorporatesupportfunctions,includingitsownserviceorganization,suchthatcertainactivitiesandassociatesweretransferredfromNovartistoAlcon,operationallyeffectiveJanuary1,2019.ServicesprovidedbyNovartisGrouptotheCompanyin2019priortotheSpin-Offtotaled$40millionandprimarilyrelatedtohumanresourcesoperations,realestateandfacilityservices,andinformationtechnology.

ManagementbelievesthatthenetchargesandmethodsusedforallocationstotheCompanywereperformedonareasonablebasisandreflecttheservices received by the Company and the cost incurred on behalf of the Company. Although the Condensed Consolidated Interim FinancialStatements reflect management's best estimate of all historical costs relatedto theCompany, this mayhowever not necessarily reflect what theresults of operations, financial position, or cash flows would have been had the Company been a separate entity, nor the future results of theCompanyasitexistsfollowingcompletionoftheseparationonApril9,2019.

12.Legalproceedingsupdate

AnumberofAlconcompaniesare,andwilllikelycontinuetobe,subjecttovariouslegalproceedingsandinvestigationsthatarisefromtimetotime,including proceedings regarding product liability, sales and marketing practices, commercial disputes, employment, and wrongful discharge,antitrust, securities,healthandsafety,environmental, tax,internationaltrade,privacy,andintellectualpropertymatters.Asaresult, theCompanymaybecomesubjecttosubstantialliabilitiesthatmaynotbecoveredbyinsuranceandcouldaffectourbusiness,financialpositionandreputation.While the Companydoesnot believethat anyof theselegal proceedings will havea material adverseeffect on its financial position, litigation isinherentlyunpredictableandlargejudgmentssometimesoccur. Asaconsequence,theCompanymayinthefutureincurjudgmentsorenterintosettlements of claims that could have a material adverse effect on its results of operations or cash flow. Note 16 to the Combined FinancialStatementsintheForm20-FcontainsasummaryofsignificantlegalproceedingstowhichtheCompanyoritssubsidiarieswereapartyasofthedateof theForm20-F. Thefollowingis a summary asofAugust 20, 2019of significant developments in thoseproceedingsaswell as anynewsignificantproceedingscommencedsincethedateoftheForm20-F.

MIVSplatformpatentinfringementlitigation

In June 2015, Johns Hopkins University ("JHU") filed a patent infringement lawsuit against certain Alcon entities alleging that the use of certainAlconsurgicalproducts,principallybythirdparties,infringesapatentdirectedtocertainmethodsofocularsurgery.InMarch2019,AlconandJHUenteredintoasettlementagreementinfullsettlementofallclaimsrelatingtothisproceeding.

LenSx lasersystemandWaveLight FS200laserpatentinfringementlitigations

Twoconsolidatedcaseswerefiledagainst AlconclaimingthattheLenSx lasersystemandWaveLight FS200femtosecondlaserinfringetwoUSpatentsexpiringin2018and2030.ThedistrictcourtenteredsummaryjudgmentforAlcon,andtheplaintiffappealedtotheUSCourtofAppealsfortheFederalCircuit.Thecourtofappealsaffirmedthedistrictcourt’sjudgmentforAlcononAugust8,2019.

32

Inadditiontothemattersdescribedabove,therehavebeenotherdevelopmentsintheotherlegalmattersdescribedinNote16totheCombinedFinancialStatementsintheForm20-F.However,thedevelopmentsduringthefirstsixmonthsof2019donotsignificantlyaffecttheassessmentofmanagementconcerningtheadequacyofthetotalprovisionsrecordedforlegalproceedings.

13.Subsequentevents

TheseunauditedCondensedConsolidatedInterimFinancial Statementswereauthorizedfor issuebytheCompany'sAudit &RiskCommitteeonAugust20,2019.

33

SUPPLEMENTARYINFORMATION-DEFINITIONSANDRECONCILIATIONSOFNON-IFRSMEASURESNon-IFRSmeasuresasdefinedbytheCompany

Alconusescertainnon-IFRSmetricswhenmeasuringperformance,includingwhenmeasuringcurrentperiodresultsagainstpriorperiods,includingcoreresults,percentagechangesmeasuredinconstantcurrencies,EBITDA,freecashflow,andnetliquidity/(debt).

Becauseoftheirnon-standardizeddefinitions,thenon-IFRSmeasures(unlikeIFRSmeasures)maynotbecomparabletothecalculationofsimilarmeasuresofothercompanies.Thesenon-IFRSmeasuresarepresentedsolelytopermitinvestorstomorefullyunderstandhowAlconmanagementassessesunderlyingperformance.Thesenon-IFRSmeasuresarenot,andshouldnotbeviewedas,asubstituteforIFRSmeasures.

Coreresults

Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets,excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss, and certainacquisition related items. The following items that exceed a threshold of $10 million and are deemed exceptional are also excluded from coreresults: integrationanddivestment relatedincomeandexpenses, divestment gainsandlosses, restructuring charges/releasesandrelateditems,legal related items, impairments of property, plant and equipment and financial assets, as well as incomeand expense items that managementdeemsexceptionalandthatareorareexpectedtoaccumulatewithintheyeartobeovera$10millionthreshold.

TaxesontheadjustmentsbetweenIFRSandcoreresultstakeintoaccount,foreachindividualitemincludedintheadjustment,thetaxratethatwillfinallybeapplicabletotheitembasedonthejurisdictionwheretheadjustmentwillfinallyhaveataximpact.Generally,thisresultsinamortizationandimpairmentofintangibleassetsandacquisition-relatedrestructuringandintegrationitemshavingafulltaximpact.Thereisusuallyataximpactonotheritems,althoughthisisnotalwaysthecaseforitemsarisingfromlegalsettlementsincertainjurisdictions.

Alconbelievesthatinvestorunderstandingofitsperformanceisenhancedbydisclosingcoremeasuresofperformancebecause,sincetheyexcludeitemsthatcanvarysignificantlyfromperiodtoperiod,thecoremeasuresenableahelpfulcomparisonofbusinessperformanceacrossperiods.Forthissamereason,AlconusesthesecoremeasuresinadditiontoIFRSandothermeasuresasimportantfactorsinassessingitsperformance.

AlimitationofthecoremeasuresisthattheyprovideaviewofAlconoperationswithoutincludingalleventsduringaperiod,suchastheeffectsofanacquisition,divestment,oramortization/impairmentsofpurchasedintangibleassetsandrestructurings.

Constantcurrencies

Changesintherelativevaluesofnon-UScurrenciestotheUSdollarcanaffectAlconfinancialresultsandfinancialposition.Toprovideadditionalinformationthatmaybeusefultoinvestors,includingchangesinsalesvolume,wepresentinformationaboutchangesinournetsalesandvariousvaluesrelatingtooperatingandnetincomethatareadjustedforsuchforeigncurrencyeffects.

Constantcurrencycalculationshavethegoalofeliminatingtwoexchangerateeffectssothatanestimatecanbemadeofunderlyingchangesintheconsolidatedincomestatementexcluding:

• theimpactoftranslatingtheincomestatementsofconsolidatedentitiesfromtheirnon-USdollarfunctionalcurrenciestotheUSdollar;and

• theimpactofexchangeratemovementsonthemajortransactionsofconsolidatedentitiesperformedincurrenciesotherthantheirfunctionalcurrency.

Alconcalculatesconstantcurrencymeasuresbytranslatingthecurrentyear'sforeigncurrencyvaluesforsalesandotherincomestatementitemsintoUSdollars,usingtheaverageexchangeratesfromtheprioryearandcomparingthemtotheprioryearvaluesinUSdollars.

34

EBITDA

Alcondefinesearningsbeforeinterest, tax, depreciationandamortization(EBITDA)asnet (loss)/incomeexcludingincometaxes, depreciationofproperty, plant and equipment (including any related impairment charges), depreciation of right-of-use assets, amortization of intangible assets(includinganyrelatedimpairmentcharges),interestexpenseandotherfinancialincomeandexpense.

Freecashflow

Alcondefinesfreecashflowasnetcashflowsfromoperatingactivitieslesscashflowassociatedwiththepurchaseorsaleofproperty,plantandequipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator ofAlcon'sabilitytooperatewithoutrelianceonadditionalborrowingoruseofexistingcash.FreecashflowisnotintendedtobeasubstitutemeasurefornetcashflowsfromoperatingactivitiesasdeterminedunderIFRS.

Netliquidity/(debt)

Alcon defines net liquidity/(debt) as current and non-current financial debt less cash and cash equivalents, current investments and derivativefinancialinstruments.Netliquidity/(debt)ispresentedasadditionalinformationbecausemanagementbelievesitisausefulsupplementalindicatorofAlcon's ability to pay dividends, to meet financial commitments and to invest in new strategic opportunities, including strengthening its balancesheet.

Growthrateandmargincalculations

Foreaseofunderstanding,Alconusesasignconventionforitsgrowthratessuchthatareductioninoperatingexpensesorlossescomparedtotheprioryearisshownasapositivegrowth.

Gross margins, operating income/(loss) margins and core operating incomemargins are calculated based uponnet sales to third parties unlessotherwisenoted.

35

ReconciliationofIFRSresultstocoreresults

Segmentcontribution

Three months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

     

($millions)IFRS

ResultsSeparationCosts(2)

OtherItems(3)

CoreResults

Surgicalsegmentcontribution 217 3 15 235VisionCaresegmentcontribution 135 5 3 143Notallocatedtosegments (405) 258 70 9 (68)Totaloperating(loss)/income (53) 258 78 27 310(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Surgical  segment  contribution  includes  $18  million  in  amortization  of  option  rights,  integration  related  expenses  for  recent  acquisitions  and  manufacturing  sitesconsolidation activities, partially offset by a $3 million fair value adjustment of a contingent consideration liability. Vision Care segment contribution includes integrationrelated expenses for recent acquisitions. Not allocated to segments primarily includes a fair value adjustment on a financial asset.

Three months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millions)IFRS

Results Impairments(2)Restructuring

items(3)Legal

items(4)Other

Items(5)Core

ResultsSurgicalsegmentcontribution 219 18 237VisionCaresegmentcontribution 131 131Notallocatedtosegments (312) 254 39 2 9 (48) (56)Totaloperatingincome 38 254 39 2 9 (30) 312

(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes restructuring charges and related items.

(4) Includes legal costs related to an investigation.

(5) Surgical segment contribution includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Not allocated to segments primarilyincludes a fair value adjustment on a financial asset.

36

Segmentcontribution(continued)

Six months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

       

($millions)IFRS

ResultsSeparationCosts

(2)Legal

items(3)Other

Items(4)Core

ResultsSurgicalsegmentcontribution 440 3 20 463VisionCaresegmentcontribution 282 5 14 301Notallocatedtosegments (823) 513 70 32 68 (140)Totaloperating(loss)/income (101) 513 78 32 102 624(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Includes legal settlement costs and certain external legal fees.

(4) Surgical  segment  contribution  includes  $33  million  in  amortization  of  option  rights,  spin  readiness  costs,  integration  related  expenses  for  recent  acquisitions  andmanufacturing  sites  consolidation  activities,  partially  offset  by  $13  million  in  fair  value  adjustments  of  a  contingent  consideration  liability.  Vision  Care  segmentcontribution includes spin readiness costs and integration related expenses for recent acquisitions. Not allocated to segments primarily includes spin readiness costs and afair value adjustment on a financial asset.

Six months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millions)IFRS

Results Impairments(2)Restructuring

items(3)Legal

items(4)Other

Items(5)Core

ResultsSurgicalsegmentcontribution 422 31 453VisionCaresegmentcontribution 314 314Notallocatedtosegments (625) 507 39 2 18 (54) (113)Totaloperatingincome 111 507 39 2 18 (23) 654(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes restructuring charges and related items.

(4) Includes legal costs related to an investigation.

(5) Surgical segment contribution includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Not allocated to segments includes afair value adjustment on a financial asset.

37

Operating(loss)/income,net(loss)/income,and(loss)/earningspershare

Three months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

     

($millionsexcept(loss)/earningspershare)IFRSResults

SeparationCosts(2)

OtherItems(3)

CoreResults

Grossprofit 947 252 3 2 1,204

Selling,general&administration (760)   13 2 (745)Research&development (167) 6 2 13 (146)

Otherincome 6     2 8

Otherexpense (79)   60 8 (11)Operating(loss)/income (53) 258 78 27 310(Loss)/incomebeforetaxes (96) 258 78 27 267Taxes(4) (294) (36) (18) 312 (36)Net(loss)/income (390) 222 60 339 231

Basic(loss)/earningspershare(5) (0.80)       0.47

Diluted(loss)/earningspershare(5) (0.80)       0.47(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Gross profit  includes manufacturing sites  consolidation activities.  Selling,  general  & administration includes expenses for  integration of  recent  acquisitions.  Research &development includes $16 million primarily for the amortization of option rights and expenses for integration of recent acquisitions,  partially offset by a $3 million fairvalue adjustment of a contingent consideration liability. Other income and expense include $10 million for fair value adjustments of a financial asset and other items.

(4) Total tax adjustments of $258 million included tax associated with operating income core adjustments and discrete tax items. Tax associated with operating income coreadjustments of $363 million totaled $58 million with an average tax rate of 16.0%.

Coretaxadjustmentsfordiscreteitemstotaled$316million,includinga$301millionnon-cashtaxexpenseforre-measurementofdeferredtaxbalancesasaresultofSwisstaxreform,changesinuncertaintaxpositionsandotheritems.

(5) Corebasicearningspershareiscalculatedusingthe488.2 million weighted-averagesharesofcommonstockoutstandingduringtheperiodfollowingtheSpin-Off.

Coredilutedearningspersharealsocontemplatedilutivesharesof1.8millionassociatedwithunvestedequity-basedawardsasdescribedinNote6totheCondensedConsolidatedInterimFinancialStatements,yielding490.0millionweighted-averagedilutedsharesforthethreemonthsendedJune30,2019.

38

Operating(loss)/income,net(loss)/income,and(loss)/earningspershare(continued)

Three months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millionsexcept(loss)/earningspershare)IFRSResults Impairments(2)

Restructuringitems(3)

Legalitems(4)

OtherItems(5)

CoreResults

Grossprofit 878 251 39 1,168

Selling,general&administration (722)           (722)

Research&development (152) 3       18 (131)

Otherincome 62     (1) (1) (49) 11

Otherexpense (28)     3 10 1 (14)Operatingincome 38 254 39 2 9 (30) 312Incomebeforetaxes 24 254 39 2 9 (30) 298

Taxes(6) (9)           (42)

Netincome 15           256

Basicearningspershare(7) 0.03           0.52

Dilutedearningspershare(7) 0.03           0.52(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes other restructuring income and charges and related items.

(4) Includes legal costs related to an investigation.

(5) Research and development includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Other income and expense primarilyinclude $49 million for fair value adjustments of a financial asset.

(6) Tax associated with operating income core adjustments of $274 million totaled $33 million.  The core tax rate of 14.2% has been applied to core pre-tax income for theperiod.

(7) For periods prior to the Spin-Off, the denominator for both core basic and diluted earnings per share was calculated using the 488.2  million sharesofcommonstockdistributedintheSpin-Off.

39

Operating(loss)/income,net(loss)/income,and(loss)/earningspershare(continued)

Six months ended June 30, 2019

    Amortizationofcertainintangible

assets(1)

       

($millionsexcept(loss)/earningspershare)IFRSResults

SeparationCosts(2)

Legalitems(3)

OtherItems(4)

CoreResults

Grossprofit 1,799 502 3 10 2,314

Selling,general&administration (1,416)   13   9 (1,394)

Research&development (313) 11 2   20 (280)

Otherincome 18       (1) 17

Otherexpense (189)   60 32 64 (33)Operating(loss)/income (101) 513 78 32 102 624(Loss)/incomebeforetaxes (161) 513 78 32 102 564Taxes(5) (338) (70) (18) (8) 348 (86)Net(loss)/income (499) 443 60 24 450 478

Basic(loss)/earningspershare(6) (1.02)         0.98

Diluted(loss)/earningspershare(6) (1.02)         0.98(1) Includes recurring amortization for all intangible assets other than software.

(2) Separation costs are expected to be incurred over the two to three-year period following the completion of the Company’s Spin-Off from Novartis and primarily includecosts related to IT and third party consulting fees.

(3) Includes legal settlement costs and certain external legal fees.

(4) Gross  Profit  includes  spin  readiness  costs  and  manufacturing  sites  consolidation  activities.  Selling,  general  &  administration  includes  expenses  for  spin  readiness  andintegration  of  recent  acquisitions.  Research  &  development  includes  $33  million  primarily  for  the  amortization  of  option  rights  and  expenses  for  integration  of  recentacquisitions, partially offset by $13 million in fair value adjustments of a contingent consideration liability.  Other income and expense primarily includes spin readinesscosts.

(5) Total tax adjustments of $252 million included tax associated with operating income core adjustments and discrete tax items. Tax associated with operating income coreadjustments of $725 million totaled $115 million with an average tax rate of 15.9%.

Coretaxadjustmentsfordiscreteitemstotaled$367million,includinga$301millionnon-cashtaxexpenseforre-measurementofdeferredtaxbalancesasaresultofSwisstaxreformanda$68milliontaxexpenserelatedtoratechangesintheUSfollowingtheSpin-Off,offsetbynetchangesinuncertaintaxpositions.

(6) Corebasicearningspershareiscalculatedusingthe488.2 million weighted-averagesharesofcommonstockoutstandingduringtheperiodfollowingtheSpin-Off.

Coredilutedearningspersharealsocontemplatedilutivesharesof0.9millionassociatedwithunvestedequity-basedawardsasdescribedinNote6totheCondensedConsolidatedInterimFinancialStatements,yielding489.1millionweighted-averagedilutedsharesforthesixmonthsendedJune30,2019.

40

Operating(loss)/income,net(loss)/income,and(loss)/earningspershare(continued)

Six months ended June 30, 2018

    Amortizationofcertainintangible

assets(1)

         

($millionsexcept(loss)/earningspershare)IFRSResults Impairments(2)

Restructuringitems(3)

Legalitems(4)

OtherItems(5)

CoreResults

Grossprofit 1,745 502 39 2,286

Selling,general&administration (1,375)           (1,375)

Research&development (289) 5       31 (253)

Otherincome 81     (1) (1) (59) 20

Otherexpense (51)     3 19 5 (24)Operatingincome 111 507 39 2 18 (23) 654Incomebeforetaxes 85 507 39 2 18 (23) 628

Taxes(6) (32)           (89)

Netincome 53           539

Basicearningspershare(7) 0.11           1.10

Dilutedearningspershare(7) 0.11           1.10

(1) Includes recurring amortization for all intangible assets other than software.

(2) Includes impairment charges related to intangible assets.

(3) Includes restructuring income and charges and related items.

(4) Includes legal costs related to an investigation.

(5) Research and development includes amortization of option rights and a fair value adjustment of a contingent consideration liability. Other income and expense primarilyinclude fair value adjustments of a financial asset.

(6) Tax associated with operating income core adjustments of $543 million totaled $57 million.  The core tax rate of 14.2% has been applied to core pre-tax income for theperiod.

(7) For periods prior to the Spin-Off, the denominator for both core basic and diluted earnings per share was calculated using the 488.2 million sharesofcommonstockdistributedintheSpin-Off.

41

EBITDA

  Threemonthsended   Sixmonthsended

($millions)June30,2019

June30,2018 Change  

June30,2019

June30,2018 Change

               

Net(loss)/income (390) 15 (405)   (499) 53 (552)Taxes 294 9 285   338 32 306Depreciationofproperty,plant&equipment 65 60 5   129 119 10Depreciationonright-of-useassets 15 — 15   29 — 29Amortizationofintangibleassets 270 258 12   536 516 20Impairmentsofproperty,plant&equipment,andintangibleassets — 39 (39)   — 39 (39)Interestexpense 35 6 29   44 12 32Otherfinancialincomeandexpense 8 8 —   16 14 2EBITDA 297 395 (98)   593 785 (192)

Cashflowandnet(debt)/liquidity

  Sixmonthsended($millions) June30,2019 June30,2018     

Netcashflowsfromoperatingactivities 301 555Netcashflowsusedininvestingactivities (558) (275)Netcashflowsfrom/(usedin)financingactivities 747 (298)Effectofexchangeratechangesoncashandcashequivalents 4 (3)Netchangeincashandcashequivalents 494 (21)Changeinderivativefinancialinstrumentassets 1 —Changeincurrentandnon-currentfinancialdebts(1) (3,475) 8Changeinotherfinancialliabilitiestoformerparent 67 (2)Changeinotherfinancialreceivablesfromformerparent (39) 11Changeinnet(debt)/liquidity(1) (2,952) (4)NetliquidityatJanuary1 152 126Net(debt)/liquidityatJune30(1) (2,800) 122(1) Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 2 and 7 to the Condensed

ConsolidatedInterimFinancialStatements.Underthemodifiedretrospectiveapproach,comparativeinformationwasnotrestated.However,thebalancespreviously reported in "Financial debts" for a finance lease obligation have been reclassified from "Financial debts" to "Non-current lease liabilities" toenhance the inter-period comparability of information presented. This reclassification of Balance Sheet presentation has also been reflected in thecomputationoftheChangeinnetliquidity,resultinginanincreaseinNetliquidityasofJanuary1,2019,June30,2018andJanuary1,2018of$89million,$86millionand$84million,respectively.

42

Net(debt)/liquidity

($millions) AtJune30,2019 AtDecember31,2018 Change       

Currentfinancialdebt (1,771) (47) (1,724)Otherfinancialliabilitiestoformerparent — (67) 67Otherfinancialreceivablesfromformerparent — 39 (39)Non-currentfinancialdebt(1) (1,751) — (1,751)Totalfinancialdebt (3,522) (75) (3,447)       

Lessliquidity:Cashandcashequivalents 721 227 494Derivativefinancialinstruments 1 — 1Totalliquidity 722 227 495Net(debt)/liquidity(1) (2,800) 152 (2,952)(1) Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 2 and 7 to the Condensed

ConsolidatedInterimFinancialStatements.Underthemodifiedretrospectiveapproach,comparativeinformationwasnotrestated.However,thebalancespreviously reported in "Financial debts" for a finance lease obligation have been reclassified from "Financial debts" to "Non-current lease liabilities" toenhance the inter-period comparability of information presented. This reclassification of Balance Sheet presentation has also been reflected in thecomputationofNet(debt)/liquidity,resultinginanincreaseinNet(debt)/liquidityof$89millionasofDecember31,2018.

Freecashflow

ThefollowingisasummaryofAlconfreecashflowforthesixmonthsendedJune30,2019and2018,togetherwithareconciliationtonetcashflowsfromoperatingactivities,themostdirectlycomparableIFRSmeasure:

  Sixmonthsended($millions) June30,2019   June30,2018       

Netcashflowsfromoperatingactivities 301   555Purchaseofproperty,plant&equipment (206)   (179)Freecashflow 95   376

43

CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS

This document contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private SecuritiesLitigationReformActof1995.Forward-lookingstatementscanbeidentifiedbywordssuchas:“anticipate,”“intend,”“commitment,”“lookforward,”“maintain,”“plan,”“goal,”“seek,”“believe,”“project,”“estimate,”“expect,”“strategy,”“future,”“likely,”“may,”“should,”“will”andsimilarreferencestofutureperiods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Alcon’s currentbeliefs, expectations and assumptions regarding the future of its business, future plans and strategies, and other future conditions. Becauseforward-lookingstatementsrelatetothefuture,theyaresubjecttoinherentuncertaintiesandrisksthataredifficulttopredict.Suchforward-lookingstatementsaresubjecttovariousrisksanduncertaintiesfacingAlcon,including:thecommercialsuccessofitsproductsanditsabilitytomaintainand strengthen its position in its markets; the success of its research and development efforts; uncertainties regarding the success of Alcon’sseparation and spin-off from Novartis; pricing pressure from changes in third party payor coverage and reimbursement methodologies; globaleconomic, financial, legal, tax, political, and social change; ongoing industry consolidation; its ability to maintain relationships in the healthcareindustry;changesininventorylevelsorbuyingpatternsofitscustomers;itsrelianceonsoleorlimitedsourcesofsupply;itsrelianceonoutsourcingkeybusinessfunctions;itsabilitytoprotectitsintellectualproperty;theimpactonunauthorizedimportationofitsproductsfromcountrieswithlowerprices to countries with higher prices; its success in completing and integrating strategic acquisitions; the effects of litigation, including productliability lawsuits; its ability to comply with all laws to which it may be subject; effect of product recalls or voluntary market withdrawals, includingCyPass; data breaches; the implementation of its enterprise resource planning system; its ability to attract and retain qualified personnel; thesufficiencyofitsinsurancecoverage;theaccuracyofitsaccountingestimatesandassumptions,includingpensionplanobligationsandthecarryingvalue of intangible assets; the ability to obtain regulatory clearance and approval of its products as well as compliance with any post-approvalobligations;legislativeandregulatoryreform;theabilityofAlconPharmaceuticalsLtd.tocomplywithitsinvestmenttaxincentiveagreementwiththeSwissStateSecretariatforEconomicAffairsinSwitzerlandandtheCantonofFribourg,Switzerland;abilitytoserviceitsdebtobligations;theneedforadditionalfinancing;itsabilitytooperateasastand-alonecompany;whetherthetransitionalservicesNovartishasagreedtoprovideAlconaresufficient;theimpactofthespin-offfromNovartisonAlcon’sshareholderbase;theabilitytodeclareandpaydividends;andtheeffectofmaintainingorlosingitsforeignprivateissuerstatusunderUSsecuritieslaws.AdditionalfactorsarediscussedinAlcon’sfilingswiththeUnitedStatesSecuritiesand Exchange Commission, including its Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlyingassumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-lookingstatements.

Forward-looking statements in this document speak only as of the date of its filing, and Alcon assumes no obligation to update forward-lookingstatementsasaresultofnewinformation,futureeventsorotherwise.

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ABOUTALCONAlcon helps people see brilliantly. As the global leader in eye care with a heritage spanning more than seven decades, we offer the broadestportfolioofproductstoenhancesightandimprovepeople’slives.OurSurgicalandVisionCareproductstouchthelivesofmorethan260millionpeopleinover140countrieseachyearlivingwithconditionslikecataracts,glaucoma,retinaldiseasesandrefractiveerrors.Ourmorethan20,000associates are enhancing the quality of life through innovative products, partnerships with eye care professionals and programs that advanceaccesstoqualityeyecare.Learnmoreatwww.alcon.com.

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