4.A. HISTORY AND DEVELOPMENT OF THE COMPANY General Corporate Information Alcon is a stock corporation (Aktiengesellschaft) organized under the laws of Switzerland in accordance with article 620 et seq. of the Swiss Code of Obligations and registered with the register of commerce of the Canton of Fribourg, Switzerland (“Commercial Register”) under registration number CHE‑234.781.164. Alcon is registered in the Commercial Register under each of Alcon AG, Alcon SA and Alcon Inc., all of which are stated in Alcon's articles of incorporation (our "Articles of Incorporation") as our corporate name. Alcon was formed for an unlimited duration, effective as of September 21, 2018, the date of the registration of Alcon in the Commercial Register. On April 9, 2019, Alcon’s shares were listed on the SIX and the NYSE under the ticker symbol “ALC.” Alcon is domiciled in Fribourg, Switzerland and our registered office is located at Rue Louis‑d’Affry 6, 1701 Fribourg, Switzerland. Our headquarters is located in Geneva, Switzerland at the following address: Chemin de Blandonnet 8, 1214 Vernier, Geneva, Switzerland. Our telephone number is +41 58 911 2000. Our principal website is www.alcon.com. The information contained on our website is not a part of this Form 20‑F. General Development of Business Alcon was originally founded in 1945 by pharmacists Robert Alexander and William Conner, who opened a small pharmacy under the “Alcon” name in Fort Worth, Texas. In 1947, Alcon was first incorporated and began manufacturing specialty pharmaceutical products to address ocular health needs. In the succeeding years, Alcon began operating internationally with the opening of an office in Canada and first formed its surgical division. In 1977, Alcon was acquired by a Swiss subsidiary of Nestlé S.A. and, consequently, Alcon began operating as a wholly owned subsidiary of Nestlé until 2002. On March 20, 2002, Nestlé completed an initial public offering of approximately 25% of Alcon's outstanding common shares upon which Alcon was publicly listed and traded on the NYSE under the symbol “ACL”. In a series of transactions from 2008 through 2011, Novartis AG acquired 100% of Alcon's outstanding common shares creating the Alcon division within Novartis. On April 9, 2019, Novartis completed the legal and structural separation of Alcon into a stand-alone company through a spin-off transaction, upon which Alcon became a stand-alone, independent company. Since the spin-off, Alcon has focused on launching innovative new products, investing in manufacturing line expansion and pursuing adjacencies such as pharmaceuticals. Significant Acquisitions, Dispositions and other Events Significant Investments From time to time, we make significant investments in certain of our manufacturing facilities to enhance our production capabilities. For more information, see “Item 4.D. Property, Plants and Equipment—Major Facilities”. Acquisitions In the past three years, we have entered into certain acquisition transactions, including (i) the acquisition of 100% of the outstanding shares and equity of LumiThera Inc. ("LumiThera"); (ii) the acquisition of all remaining outstanding shares and equity of Cylite Pty, Ltd. ("Cylite"); (iii) the acquisition of 99% of the outstanding shares and equity of Aurion Biotech, Inc. ("Aurion"); and (iv) the acquisition of 100% of the outstanding shares and equity of BELKIN Vision Ltd. ("BELKIN"). For further details on certain of our significant transactions in 2025, 2024 and 2023, see Notes 3 and 21 to the Consolidated Financial Statements. Share Repurchase Program On February 25, 2025, our Board announced the adoption of a share repurchase program of up to $750 million of our Ordinary shares. The shares acquired are held in treasury and are intended to offset the dilutive effect of shares vesting 25 under our equity based incentive plans. Alcon funded the repurchases through cash generated from operations. The program was authorized by the Swiss Takeover Board and subject to customary safe harbor conditions. The share repurchase program was originally expected to be completed over a three year period, but was completed in January 2026. As of December 31, 2025, 8,437,394 shares were repurchased for a total consideration of $682 million. See "Item 16E—Purchases of Equity Securities by the Issuer and Affiliated Purchasers." Transformation Program On November 19, 2019, we announced a multi-year transformation program to better align our organizational structure with the scope of Alcon's business operations globally. We created four shared business centers designed to create efficiencies for reinvestment into key growth drivers. The transformation program was originally projected to deliver annual run-rate savings of approximately $200 to $225 million, to be reinvested into key growth drivers, with an original projected cost of the program of $300 million by 2023. On November 15, 2022, we announced additional transformation initiatives to deliver incremental efficiencies. As a result, we projected incremental run-rate savings of approximately $100 million, with incremental program costs of approximately $125 million. As expected, this program was completed by year-end 2023 and in line with estimates. Additional Information The SEC maintains an internet website at www.sec.gov that contains reports, proxy and information statements and other information regarding companies that file documents electronically with the SEC. Our internet website is www.alcon.com. The information included on our internet website or the information that might be accessed through such website is not included in this Annual Report and is not incorporated into this Annual Report by reference. 26 4.B. BUSINESS OVERVIEW Overview Alcon is the global leader in eye care with $10.3 billion in net sales during the year ended December 31, 2025. We research, develop, manufacture, distribute and sell a full suite of eye care products within two key businesses: Surgical and Vision Care. Based on sales for the year ended December 31, 2025, we are the number one company by global market share in the ophthalmic surgical market and in the vision care market. We employ over 25,000 associates operating in 56 countries and serve consumers and patients in over 140 countries and territories. We believe our market leading position and global footprint allow us to benefit from economies of scale, maximize the potential of our commercialized products and pipeline and will permit us to effectively grow the market and expand into new product categories. Our Surgical business is focused on ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. Our broad surgical portfolio includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end needs of the ophthalmic surgeon. Our Vision Care business comprises daily disposable, reusable and color-enhancing contact lenses, cell therapies to treat ocular diseases and a comprehensive portfolio of ocular health products, including products for dry eye, ocular allergies, glaucoma and contact lens care, as well as ocular vitamins and redness relievers. Alongside our world-class products, Alcon provides best-in-class service, training, education and technical support for our customers. Our Surgical and Vision Care businesses are complementary and benefit from synergies in research and development, manufacturing, distribution and consumer awareness and education. This allows us to position ourselves as a trusted partner for eye care products across the continuum of care from retail consumers, to optometry, to surgical ophthalmology. For example, in research and development, we can apply our expertise in material and surface chemistry to develop innovative next-generation products for both our IOL and contact lens product lines. Similarly, our global commercial footprint and expertise as a global organization provide us with product development, manufacturing, distribution and commercial promotion and marketing knowledge that can be applied to both of our businesses. We are dedicated to providing innovative products that enhance quality of life by helping people See Brilliantly. Our strong foundation is based on our longstanding success as a trusted brand, our legacy of industry firsts and advancements, our leading positions in the markets in which we compete and our continued commitment to substantial investment in innovation. With more than 75 years of history in the ophthalmic industry, we believe the Alcon brand name is synonymous with innovation, quality, service and leadership among eye care professionals worldwide. Our Markets Overview We currently operate in the global ophthalmic surgical and vision care markets, which are large, dynamic and growing. As the world population grows and ages, the need for quality eye care is expanding and evolving, and we estimate that the size of the eye care market in which we operate is approximately $37 billion and is projected to grow mid-single digits on average per year from 2025 to 2030. Although it is estimated that 90% of all visual impairments are currently preventable, treatable or curable, we operate in markets that have substantial unmet medical and consumer needs. For example, based on market research, it is estimated that there are currently 65 million people with moderate to severe vision impairment due to cataracts, 1.8 billion who suffer from presbyopia, 157 million with uncorrected refractive errors, 146 million with diabetic retinopathy, 131 million living with glaucoma and approximately 1.6 billion who suffer from symptoms of dry eye, among other unaddressed ocular health conditions. In addition, there are 1 billion people living with some form of unaddressed visual impairment. Below is a brief description of these ocular disorders. 27 Our Surgical and Vision Care products are targeted at addressing many of these unmet medical and consumer needs. We expect the surgical and vision care markets to continue to grow, driven by multiple factors and trends, including: •Aging population with growing eye care needs: A growing aging population continues to drive the increased prevalence of eye care conditions worldwide, as the number of persons aged 60 years or over is expected to more than double by 2050, rising from 962 million globally in 2017 to 2.1 billion in 2050. •Innovation improving the quality of eye care: Technology innovation in eye care is driving an increased variety of products that more effectively treat eye conditions. The importance of vision correction and preservation, the high return on healthcare spend and the improved patient outcomes are leading to increased coverage and reimbursement opportunities from governmental and private third-party payors, expanding patient access to such eye care products. •Increasing wealth and growth from emerging economies: It is estimated that by 2035 the global middle class population is expected to exceed 5 billion people with the majority of growth coming in emerging markets. This major demographic shift is generating a large, new customer base with increased access to eye care products and services along with the resources to pay for them. The expansion of training opportunities for eye care professionals in emerging markets is also leading to increased patient awareness and access to premium eye care products and surgical procedures, facilitating their growth. •Increasing prevalence of myopia, progressive myopia and digital eye strain: It is estimated that by 2050, half of the world's population (nearly five billion people) will be myopic. Further, the modern work environment, along with leisure preferences, have increased the number of hours people spend in front of a screen, adversely impacting vision and increasing the risk of progressive myopia and digital eye strain. The Surgical Market The surgical market in which we operate is estimated to be approximately $14 billion and is projected to grow approximately 4-6% on average per year from 2025 to 2030. The surgical market includes sales of implantables, consumables and surgical equipment, including associated technical, clinical and service support and training. Surgical implantables are medical devices designed to remain in the eye, such as monofocal IOLs, ATIOLs and stents placed in the eye during cataract surgery. Consumables include hand-held instruments, surgical solutions, equipment cassettes, patient interfaces and other disposable items typically used during a single ophthalmic surgical procedure. Finally, surgical 28 equipment includes multi-use surgical consoles, lasers and diagnostic instruments used across procedures to enable surgeons to visualize and conduct ophthalmic surgeries. Market growth is expected to be driven mainly by: ▪An aging population causing increased global demand in cataract and vitreoretinal procedures; ▪A growing role of generative artificial intelligence and digital transformation that will drive connectivity between clinic and operating room equipment, fuel artificial intelligence-driven solutions to drive patient outcomes and accelerate advancements in imaging technology; ▪Continued adoption of premium patient-pay technologies, namely ATIOLs, where international penetration continues to expand to catch up to the US levels of approximately 20%; and ▪Increasing use of advanced technologies, including enhanced diagnostic tools, new surgical options for glaucoma and wider adoption of phacoemulsification in cataract surgeries, which is now used in over 50% of cases in emerging markets versus over 98% in the US. Additionally, the global burden of diabetic retinopathy is expected to remain high through 2045, at which point 161 million people are projected to suffer the condition. The Vision Care Market The vision care market in which we operate is estimated to be approximately $23 billion and is projected to grow approximately 4-5% on average per year from 2025 to 2030. The vision care market is comprised of products designed for use by eye care professionals and consumers. Products are largely categorized across two product lines: contact lenses and ocular health. Market growth is expected to be driven mainly by: •Fast growing daily disposable silicone-hydrogel ("SiHy") contact lens and premium reusable lens segment fueled by better material, improved health and comfort and enhanced vision acuity; •Advancements in specialty lenses combined with increasing demand for toric and multifocal lenses, which command an approximately 20-40% pricing premium over spherical lenses, allowing patients to continue wearing contact lenses as they become older and helping to expand the market; •A significant population of approximately 1.6 billion people worldwide who suffer from symptoms of dry eye, but do not have clinical signs of dry eye, over 750 million people who have both symptoms and clinical signs of dry eye, and over 650 million people who are at risk of developing dry eye in that they have clinical signs, but are not yet suffering from dry eye symptoms; •A rising number of elderly people worldwide such that primary open-angle glaucoma (POAG) now affects an estimated 84 million people and ocular hypertension, often a predecessor to POAG, is estimated to affect another 48 million people; •Growing access and consumption of vision care products in emerging markets such as Asia, which had an estimated single-digit contact lens penetration as compared to double digits in the developed world; and •Increasing consumer access through the expansion of distribution models, including internet sales and other direct-to-consumer channels. Our Business Overview With $10.3 billion in net sales during the year ended December 31, 2025, we are the global leader in eye care. Our broad range of products represents one of the most complete portfolios in the ophthalmic industry and comprises high-quality and technologically advanced products across all major product categories in the surgical and vision care markets. Our Surgical and Vision Care products are used in treating multiple ocular health conditions and offer leading eye care solutions for patients throughout their lives. 29 Our leadership position across most of our product categories provides us the scale and expertise to enhance our ability to extend our product offering through the launch of new and innovative products and to expand our geographic reach into ophthalmic markets worldwide. Our Surgical business had approximately $5.8 billion in net sales of implantables, consumables and equipment, as well as services and other surgical products, and our Vision Care business had approximately $4.6 billion in net sales of our contact lens and ocular health products, during the year ended December 31, 2025. 30 We believe the Alcon brand name is synonymous with innovation, quality, service and leadership among eye care professionals worldwide. In each of our markets, we rely on our strong relationships with eye care professionals and consumers to attract and retain customers and expand the market. We customize our selling efforts with the goal of surrounding eye care professionals with Alcon representatives who can help address each aspect of a customer's needs. Our field force supplements the direct promotion of our products by providing customers with access to clinical education programs, hands on training, data from clinical studies and technical service assistance. We have 16 state-of-the-art manufacturing facilities that employ our proprietary technologies and know-how. We believe our global footprint, knowledge base in manufacturing, state-of-the-art facilities and capacity planning enable us to handle increased levels of product demand and product complexity. Furthermore, our global manufacturing and supply chain allows us to leverage economies of scale and reduce cost per unit as we ramp up production. We believe we have made one of the largest commitments to research and development of any surgical and vision care company, with more than 2,100 associates worldwide researching and developing treatments for vision conditions and eye diseases, and have sought innovation from both internal and external sources. In 2025, we invested $990 million in research and development. In addition to our in-house research and development capabilities, we also consider external innovation opportunities and routinely screen for companies developing emerging technologies that we believe could enhance our existing product offerings or develop into innovative new products. We intend to continue to pursue acquisition, licensing and collaboration opportunities as part of our goal of remaining a market leader in innovation. Our Surgical Business We hold the number one position in the global surgical market, offering implantable products, consumables and equipment for use in surgical procedures to address cataracts, vitreoretinal conditions, refractive errors and glaucoma. Our Surgical business has the most complete line of ophthalmic surgical devices in the industry, creating a "one-stop shop" for our customers that we consider to be a key differentiator for our business. For the year ended December 31, 2025, our Surgical business had $5.8 billion in net sales. Our Vision Care Business Our Vision Care business consists of an extensive portfolio of contact lens and ocular health products, aimed at helping consumers See Brilliantly. Our product lines include daily disposable, reusable and color-enhancing contact lenses. We also offer a comprehensive portfolio of ocular health products, including products for dry eye, ocular allergies, glaucoma and contact lens care, as well as ocular vitamins and redness relievers. With $4.6 billion in vision care net sales for the year ended December 31, 2025, we aim to continue to innovate across our vision care portfolio to help our patients around the world see brilliantly. Our Strengths We have a strong foundation based on robust industry expertise, leading brands and excellence in customer service, backed by more than 75 years of history as a trusted brand. Our strengths include: •Global leader in highly attractive markets with the most complete brand portfolio. With $10.3 billion in net sales in the year ended December 31, 2025, we are the leader in an attractive eye care market, which is supported by favorable population megatrends and is expected to grow mid-single digits per year from 2025 to 2030. Our Surgical business is the market leader in sales of ophthalmic equipment used in the operating room and is supported by the largest installed base of equipment worldwide, which we use to cross-promote our surgical consumables and IOLs. In our Vision Care business, our extensive portfolio of contact lens and ocular health products includes well-recognized brands such as TOTAL, PRECISION, Systane, Pataday and Opti-Free. We believe our global leadership position and extensive brand portfolio allow us to benefit and build on the robust fundamentals driving growth in our markets. •Innovation-focused with market leading development capabilities and investment. We believe we have made one of the largest commitments to research and development in the eye care market, with proven research and development capabilities in the areas of optical design, material and surface chemistry, automation and equipment platforms. Currently, we have more than 2,100 individuals dedicated to our research and development efforts, including physicians, doctors of optometry and PhDs. In addition, we actively seek opportunities to collaborate with third parties on advanced technologies to support our eye care business. •Global scale and reach supported by high-quality manufacturing network. We have an extensive global commercial footprint that provides us with the scale and reach to support future growth, maximize the potential of new launches, enter new geographies efficiently and to take advantage of the large, dynamic and growing surgical and vision care markets. Our commercial footprint, which includes operations in 56 countries, reaches 31 consumers and patients in over 140 countries and territories and is supported by over 4,100 sales force associates, 16 state-of-the-art manufacturing facilities employing our proprietary technologies and know-how and our extensive global regulatory capability. Our extensive sales and distribution network, supported by our market leadership position and focus on innovation and customer experience, enhances our ability to expand our geographic reach and extend our product offerings through the launch of new and innovative products worldwide. •Outstanding customer relationships and a trusted reputation for customer service, training and education. We believe that maintaining the highest levels of service excellence in our customer experience is a critical success factor in our industry. In our Vision Care business, we regularly meet with eye care practitioners to gain feedback and insights on our products and consumers' needs. We also provide training support at approximately 45 state-of-the-art interactive training centers around the world, as well as through numerous digital and event-based training programs that we provide for practitioners, clinical support staff, students, residents, patients and consumers. In each of our businesses, we have built and maintained our relationships with key participants to establish our trusted reputation in the industry. •World leading expertise in eye care led by a first-class management team. Our expertise in eye care is driven by our more than 75-year history in the industry and is supported by a high-quality workforce of more than 25,000 associates. We believe our institutional knowledge provides a competitive advantage because our associates' industry expertise, relationships with our customers and understanding of the development, manufacture and sale of our products helps us to better identify new customer needs, assess markets for entry and identify promising technologies. In addition, we believe the diverse experience of our management team in running complex businesses allows them to add significant value to our company. In particular, we benefit from having a management team with an extensive background in the eye care industry. Our Strategy Our going-forward strategy builds on five key pillars in order to generate sustainable and profitable growth: •Maximize near-term portfolio potential by growing key products. In Surgical, we aim to maintain our leadership in the IOL market with the Clareon platform fully rolled out globally, including PanOptix Pro, PanOptix, Vivity and their toric options. We expect that improved diagnostics and new optical designs will help overcome barriers to ATIOL adoption and expand the patient-pay market. We will continue investing in next-generation presbyopia-correcting lenses, launch our new operating room ecosystem (UNITY VCS) and develop advanced office diagnostic equipment (UNITY Dx) to enable seamless integration between the clinic and the OR. We also plan to grow our glaucoma portfolio through the Hydrus microstent and Voyager DSLT. In Vision Care, we will strengthen our leadership across categories through increased eye care professional and consumer education and ongoing product innovation. We aim to expand our position in the daily disposables market with our DAILIES TOTAL1 and PRECISION1 family of products, and trade patients up to premium reusable lenses with our TOTAL30 and PRECISION7 family of products, both of which are designed for comfort and visual performance. We are advancing presbyopia solutions with new lens designs to improve vision and comfort, reduce chair time and increase adoption—unlocking a potential $5 billion market. Additionally, we expect to grow the dry eye segment with our Systane portfolio and newly launched TRYPTYR and boost allergy relief with Pataday, addressing significant unmet needs and market opportunities. •Accelerate innovation and deliver the next wave of technologies. We are committed to driving innovation to remain a market leader in ophthalmic research and development. In Surgical, our R&D focuses on expanding the ATIOL portfolio to optimize vision restoration and reduce variability in outcomes through advanced optics, adjustable materials and accommodating lenses. We are also progressing next‑generation technologies to support cataract, vitreoretinal and laser-refractive surgery and to improve our visualization solutions. In Vision Care, we are advancing new contact lens materials, coatings and designs to enhance visual performance, extend product lines and improve comfort. We are also developing products to expand our portfolio in dry eye diagnostics and treatment, presbyopia solutions and overall ocular health. Finally, we will continue to complement internal innovation with strategic BD&L opportunities, partnering with leading academic institutions and early-stage companies. •Capture opportunities to expand markets and pursue adjacencies. We see significant growth potential in underpenetrated markets for both premium surgical devices, such as ATIOLs, and our Vision Care portfolio. To drive adoption, we will continue investing in promotion and customer education globally. In emerging markets, rising affluence, better technology access and increased patient awareness are expected to accelerate uptake. We have expanded our Surgical glaucoma portfolio with the addition of Voyager DSLT and re-entered the ophthalmic pharmaceutical space via acquisitions like Aerie Pharmaceuticals, adding commercialized products (Rocklatan, 32 Rhopressa) and a strong pipeline, including TRYPTYR (FDA-approved and launched in 2025). This transaction also strengthened our pharmaceutical R&D capabilities. Beyond these areas, we see opportunities to grow in adjacent categories—such as pharmaceuticals, office-based diagnostics, surgical visualization and consumer-driven ocular health—through internal development and strategic M&A. Our global footprint and eye care expertise position us to attract and retain new customers in these segments. •Support new business models to expand customer experience. In Surgical, we intend to continue to identify new business models that benefit healthcare providers and improve access to leading Alcon products and technologies. For example, in the future, we may pursue value-based business models that reward improved patient outcomes, as well as models that contract the entire procedure versus individual products. In Vision Care, where e-commerce entries have created some disruption of traditional sales channels, we believe that digital technology can address pain points experienced in existing paths to purchase. We intend to continue investing and innovating in digital capabilities to develop new business models in response to channel shifts and the increase in direct-to-consumer influence. •Leverage infrastructure to improve operating efficiencies and margin profile over time. With the significant organizational and infrastructure investments we have made over the last several years, we believe we have established a stable foundation that will allow us to continue to enhance the productivity of our commercial resources. We expect to drive significant top line growth and increase operating leverage through improved sales mix, further supply chain efficiency initiatives and support new lower-cost manufacturing platforms to meaningfully improve our core operating income margins over time. We are also optimizing our end to end processes and systems to ensure streamlined and efficient operations and improved customer experience. Our Industry Selected Conditions that are Treated by Eye Surgery and Surgical Products Cataracts A cataract is the progressive clouding of the normally transparent natural lens in the eye. This clouding is usually caused by the aging process, although it can also be caused by heredity, diabetes, environmental factors and, in some cases, medications. As cataracts grow, they typically result in blurred vision and increased sensitivity to light. Cataract formations occur at different rates and may affect one or both eyes. Cataract surgery is one of the most frequently performed surgical procedures. According to the National Eye Institute, cataracts are the leading cause of blindness worldwide even though effective surgical treatment exists. Currently, surgical removal of the clouded lens followed by insertion of a transparent artificial replacement lens, called an IOL, is the preferred treatment for cataracts. The clouded lens is usually removed through a process known as phacoemulsification. During phacoemulsification, an ophthalmic surgeon makes a small surgical incision in the cornea (approximately 2-3 millimeters wide) and inserts an ultrasonic probe that breaks up, or emulsifies, the clouded lens while a hollow needle removes the pieces of the lens. Once the clouded lens is removed, the surgeon inserts an intraocular lens through the same surgical incision. An ATIOL is a type of IOL that also corrects for refractive errors, like presbyopia and astigmatism. Cornea Conditions The cornea is the transparent, dome-shaped surface that covers the front of the eye and plays a critical role in focusing light onto the retina. A variety of conditions can affect the cornea, some of which require surgical intervention or specialized products. Common corneal conditions include: •Keratoconus – A progressive thinning and bulging of the cornea into a cone-like shape, causing distorted vision. Advanced cases may require corneal cross-linking or corneal transplantation. •Corneal Dystrophies – A group of inherited disorders characterized by abnormal deposits in the cornea, such as Fuchs’ endothelial dystrophy, which can lead to corneal swelling and vision loss. •Corneal Edema – Swelling of the cornea due to fluid buildup, often resulting from endothelial cell dysfunction or prior eye surgery. •Corneal Ulcers and Keratitis – Open sores or inflammation of the cornea, frequently caused by infection or trauma. Severe cases may require surgical intervention to prevent vision loss. •Pterygium – A benign growth of tissue extending from the conjunctiva onto the cornea, often linked to UV exposure. Surgical removal may be necessary if vision is impaired. 33 Surgical treatments for corneal conditions range from minimally invasive procedures, such as corneal cross-linking, to full-thickness corneal transplantation. Advances in lamellar techniques, such as Descemet’s Stripping Endothelial Keratoplasty (DSEK) and Descemet Membrane Endothelial Keratoplasty (DMEK), have improved outcomes by replacing only the diseased layers of the cornea rather than the entire tissue. Retinal Disorders Vitreoretinal procedures involve surgery on the back portion of the eye, namely the retina and surrounding structures. Vitrectomy is the removal of the gel-like substance, known as vitreous, that fills the back portion of the eye. Removal of the vitreous allows a vitreoretinal surgeon to operate directly on the retina or on membranes or tissues that have covered the retina. These procedures typically treat conditions such as diabetic retinopathy, retinal detachment or tears, macular holes, complications of surgery on the front of the eye, diabetic macular edema, trauma, tumors and pediatric disorders. Vitreoretinal surgery can also involve electronic surgical equipment, lasers and hand-held microsurgical instruments as well as gases and liquids that are injected into the eye. Refractive Errors Refractive errors, such as myopia, commonly known as near-sightedness, hyperopia, commonly known as far-sightedness, and astigmatism, a condition in which images are not focused at any one point, result from an inability of the cornea and the lens to focus images on the retina properly. If the curvature of the cornea is incorrect, light passing through it onto the retina is not properly focused and a blurred image results. For many years, eyeglasses and contact lenses were the only solutions for individuals afflicted with common visual impairments; however, they are not always convenient or attractive solutions. Laser refractive surgery offers an alternative to eyeglasses and contact lenses. Excimer lasers, which are low-temperature lasers that remove tissue without burning, are currently used to correct refractive errors by removing small amounts of tissue to reshape the cornea. These lasers remove tissue precisely without the use of heat and without affecting the surrounding tissue. In the LASIK procedure, the surgeon uses either a femtosecond laser or an automated microsurgical instrument, called a microkeratome, to create a thin corneal flap that remains hinged to the eye. The corneal flap is then folded back and excimer laser pulses are applied to the exposed layer of the cornea to change the shape of the cornea. The corneal flap is then returned to its normal position. LASIK has become the most commonly practiced form of laser refractive surgery globally. Presbyopia Presbyopia occurs when the natural crystalline lens inside the eye becomes less flexible and loses the ability to focus on close objects. Presbyopia is a vision condition that accompanies the natural aging process of the eye. It cannot be prevented and affects nearly two billion people worldwide. Although the onset of presbyopia among patients may seem to occur suddenly, generally becoming noticeable when patients reach their mid- to late 30s or early to mid-40s, sight reduction typically occurs gradually over time and continues for the rest of the patient's life. Some signs of presbyopia include difficulty reading materials held close to the reader, blurred vision while viewing a computer screen and eye fatigue along with headaches when reading. Presbyopia can be accompanied by other common vision conditions, such as myopia, hyperopia and astigmatism. Presbyopia, while most commonly managed with reading glasses, can be addressed surgically by the implantation of an ATIOL that allows for the correction of presbyopia at the time of cataract surgery. Glaucoma Glaucoma, a group of eye conditions that damage the optic nerve, is the second leading cause of blindness worldwide. While elevated intraocular pressure was historically considered to be synonymous with glaucoma, it is now known that many patients with glaucoma have normal intraocular pressure. Treating glaucoma is typically aimed at lowering intraocular pressure for patients with normal or elevated pressure. Most commonly, glaucoma is managed using medication (e.g., drops). For cases requiring additional intervention, laser-based procedures such as Direct Selective Laser Trabeculoplasty (DSLT) and Selective Laser Trabeculoplasty (SLT) alongside conventional surgical techniques, such as filtration surgery and tube shunts, are used to lower IOP. DSLT is a novel, non-invasive laser treatment specifically targeting the trabecular meshwork to increase aqueous outflow with minimal discomfort and downtime, making it an attractive option for early intervention. Filtration surgeries, such as trabeculectomy, involve the creation of a new channel to drain aqueous humor from inside the eye, while tube shunts establish a route for fluid to exit through an implanted device. Additionally, minimally invasive glaucoma surgeries (MIGS), which generally aim to work to increase aqueous outflow, have seen rapid adoption among both glaucoma and cataract specialists. 34 Selected Conditions and Eye Care Considerations that are Addressed by Vision Care Products Refractive Errors Refractive errors such as myopia, hyperopia, astigmatism and presbyopia are commonly addressed by the use of contact lenses. Presbyopia, for example, can be addressed by the use of multifocal and multifocal toric contact lenses. Dry Eye Disease Dry eye disease is a ubiquitous, complex and multifactorial condition, and its effect on patients ranges from intermittent and irritating discomfort to a serious, chronic, progressive and irreversible vision-threatening disorder. The incidence of dry eyes rises with age, and longer life spans and aging populations throughout the world are key contributors to increased demand for treatment. Evolving patterns of work and play also contribute to increased demand for treatment, as more people spend significant amounts of time working on computers and other digital devices. Wealthier, professional and urban population segments are expanding in rapidly emerging economies and other developing nations, and these populations have greater access to health care and more resources with which to acquire treatment. In addition, more sophisticated diagnostic tools and a greater variety of dry eye products and treatments, such as artificial tear products and pharmaceuticals, are offering improved effectiveness and greater relief as they simultaneously stimulate demand. Infections and Contamination due to Inadequate Contact Lens Care Proper care of contact lenses through compliance with disinfection regimens is important in reducing the risk of infection and irritation associated with the use of reusable contact lenses, as contact lenses are subject to contamination from cosmetics, grease, bacteria, soaps, hand lotions and atmospheric pollutants, and from proteins contained in natural tears. When used properly, contact lens care products remove such contaminants from the surface of the contact lens. In addition, lens rewetting drops may be used to rehydrate the lens during wear and to clear away surface material. Ocular Allergies Allergic conjunctivitis occurs when the conjunctiva of the eye becomes swollen from inflammation due to a reaction to pollen, dander, mold or other allergy-causing substances. When the eyes are exposed to allergy-causing substances, which can vary from person-to-person and are often dependent on geography, a substance called histamine is released by the body and causes blood vessels in the conjunctiva to swell. "Allergy eyes" can become red and itchy very quickly. Seasonal Allergic Conjunctivitis ("SAC") is the most common type of eye allergy. People affected by SAC experience symptoms during certain seasons of the year. Allergy eye can be treated with various ocular health products including medications, such as antihistamines, and combinations of antihistamines and redness relievers. Glaucoma Glaucoma is commonly managed using prescription eye drops to reduce intraocular pressure for patients with normal or elevated pressure. Our Products We research, develop, manufacture, distribute and sell eye care products. Our broad range of products represents one of the strongest portfolios in the eye care industry, with high-quality and technologically advanced products across all major product categories in ophthalmic surgical devices and vision care. We are organized into two global business segments: Surgical and Vision Care. Surgical We hold the number one position in the global ophthalmic surgical market, offering implantable products, consumables and equipment for use in surgical procedures to address cataracts, vitreoretinal conditions, refractive errors and glaucoma. Our Surgical portfolio includes equipment, instrumentation and diagnostics, IOLs and other implantables and a broad line of consumables, including viscoelastics, surgical solutions, incisional instruments, surgical custom packs and other products. For the year ended December 31, 2025, net sales for our implantables, consumables and equipment and other surgical products were $1.8 billion, $3.0 billion and $0.9 billion, respectively. Cataract, vitreoretinal, refractive and glaucoma surgeries are generally performed in hospitals or ambulatory surgery centers and are supported through a network of eye clinics, ophthalmic surgery offices and group purchasing 35 organizations. The primary ophthalmic surgical procedures for cataract, vitreoretinal and glaucoma surgery are broadly reimbursed in most mature markets. Third-party coverage or patient co-pay options are also available for refractive laser correction and ATIOLs. Finally, a growing private pay market for premium surgical devices provides a mutually beneficial environment for patients, providers and medical device companies by allowing patients to pay the non-reimbursable cost of a procedure associated with selecting premium devices, such as ATIOLs. Our installed base of equipment is core to our market leading position in our Surgical business, with best-in-class platforms in cataract and vitreoretinal equipment and the largest installed base of cataract phacoemulsification consoles, vitrectomy consoles and refractive lasers in the industry. These platforms each have long buying cycles that last approximately seven to ten years and act as anchoring technologies that drive recurring sales of our consumables and help cross-promote sales of our implantable devices. Sustainable patient access to quality eye care is core to our business. Alcon has invested significant resources to innovate new technologies, expand reimbursement pathways (public and/or private insurance) and teach new skills to clinicians around the world to improve patient outcomes and eye care access. Across our Surgical portfolio, we sell a tiered offering of products intended to meet the specific needs of customers in markets around the world at different price points. Newly launched offerings that bring considerable technology innovation to the market are typically introduced at a price premium to offset the cost of research and development. As these products age and/or competitive products advance, prices typically trend downward, requiring continuous innovation cycles to maintain and/or grow our margins. We also develop specific products to match customer needs in different customer segments, for example, premium-tier and mid-tier surgical consoles that can be manufactured and sold at different price points in different markets. Likewise, we have introduced the Legion system to help fill the gap in access to phacoemulsification surgery. This affordable system brings some of the advanced features of the Centurion system, combined with the greater serviceability, durability and portability to developing markets. Our Installed Base and Portfolio Our strong installed base of equipment and deep clinician relationships drive sales of our IOLs and consumables. We differentiate ourselves through the quality and breadth of our portfolio, offering a “one-stop-shop” solution that combines reliability, accessibility and innovation. Our Cataract Suite supports every stage of the surgical workflow—from clinical planning to cataract removal and post-operative optimization. Cataract Surgical Platforms Since 2013, we have sold Centurion, our cataract surgery vision system, in most major markets. Centurion features Active Fluidics technology, which helps maintain anterior chamber stability by allowing surgeons to set and maintain target intraocular pressure (IOP) during cataract removal, delivering greater intraoperative control. In late 2025, we introduced Unity CS, the latest evolution of our cataract surgical platform. Unity CS integrates 4D Phaco technology, enabling phacoemulsification that is twice as fast and uses 40% less energy, improving efficiency during lens removal. The system also streamlines workflows for faster setup, teardown and intraoperative adjustments, helping surgeons increase operating room throughput and procedural efficiency. Unity CS reflects our commitment to advancing cataract surgery with solutions that meet the evolving needs of surgeons. We also offer the LenSx Laser System in select major markets. LenSx was the first femtosecond laser cleared by the FDA for cataract surgery. It can perform critical steps generally handled manually by a surgeon—such as corneal incisions, capsulorhexis creation and lens fragmentation—with image-guided precision. Visualization Systems Our NGENUITY 3D visualization system enhances surgical visualization with a high-dynamic 3D camera, advanced image optimization, surgeon polarizing glasses and an ultra-high-definition 4K OLED 3D display for improved depth perception. We also offer the LuxOR ophthalmic microscope with proprietary ILLUMIN-i technology, which provides an expanded illumination field and a six-times larger, highly stable red reflex zone. 36 Biometry The ARGOS biometer integrates swept-source OCT (SS-OCT) technology with image-guided planning and intraoperative guidance. It simplifies workflows and connects seamlessly with our cataract refractive suite, ensuring precision at every stage. Planning Solutions We offer a suite of technologies that enhance surgical planning, guidance and connectivity throughout the cataract workflow. ▪Verion: Our Verion reference unit and digital marker provide advanced planning, imaging and guidance tools to improve accuracy and efficiency. These solutions help surgeons align IOLs precisely and streamline pre-operative and intraoperative steps. ▪ORA: Complementing Verion, the ORA System delivers real-time intraoperative measurements to optimize IOL placement—such as aligning toric lenses to the astigmatism axis—and supports post-operative analysis for continuous outcome improvement. ▪SMARTCataract: Part of our SMART Solutions digital health platform, SMARTCataract enables remote surgical planning and automates data transfer from diagnostic devices to OR equipment. This reduces manual data entry and saves valuable time. ▪ADI: Our cloud-based platform, ADI, connects clinics and surgery centers to streamline workflows. It integrates patient data transfer, inventory management and online ordering, reducing administrative tasks and improving efficiency. ADI also supports real-time connectivity with our devices, including Unity CS, Centurion and Verion, delivering complete, connected care across the surgical process. Our innovative glaucoma surgery solutions address critical unmet needs in managing this progressive and potentially blinding disease—covering the full continuum from mild to severe glaucoma. •Voyager Laser System (DSLT): Developed from our acquisition of BELKIN Vision’s Eagle Direct Selective Laser Trabeculoplasty technology, this system offers a non-invasive, incision-free first-line treatment for glaucoma. It enables fast, single-application procedures that broaden access to effective care and reduce the burden on healthcare systems. •Hydrus Microstent (MIGS): A minimally invasive glaucoma surgery device indicated for use in conjunction with cataract surgery to reduce intraocular pressure (IOP) in adult patients with mild to moderate primary open-angle glaucoma (POAG). It is designed to lower intraocular pressure by enhancing the eye’s natural outflow pathway via implantation into Schlemm’s canal. Hydrus is approved and marketed in several major markets, including the US. •EX-PRESS Glaucoma Filtration Device: A surgical solution for refractory glaucoma, functioning similarly to a trabeculectomy by shunting aqueous humor from the anterior chamber to a subconjunctival reservoir. Unlike traditional trabeculectomy, EX-PRESS does not require removal of scleral or iris tissue, offering a less invasive option for complex cases. This device is approved and marketed in the US, Europe, Canada, Australia, China and other markets. Together, these technologies reflect Alcon’s commitment to treating the whole paradigm of glaucoma—from early intervention to advanced disease management—through surgeon-focused solutions and patient-centric care. 37 An IOL is a tiny, artificial lens for the eye, which replaces the eye's natural lens that is removed during cataract surgery. Our IOL portfolio reflects a strong legacy of innovation, offering a comprehensive range of solutions tailored to diverse patient needs. Our optics portfolio includes: ▪Monofocal IOLs: Deliver sharp vision at a single distance, addressing basic visual correction needs; ▪Toric IOLs: Correct preexisting astigmatism, enhancing visual outcomes for patients with this common condition; and ▪Presbyopia-Correcting IOLs (PCIOLs): Includes advanced trifocal lenses like Clareon PanOptix, which provide seamless near, intermediate and distance vision, Clareon Vivity, our extended depth of focus (EDOF) IOL that balances a broader range of vision with a visual disturbance profile comparable to a monofocal lens and our next generation lens, PanOptix Pro, which provides more uninterrupted light distribution across the full visual range and is designed for better image contrast. Our IOLs are predominantly made of Clareon, an advanced hydrophobic acrylic material offering exceptional clarity, reduced edge glare and enhanced stability. We also offer delivery systems to simplify the surgical process while ensuring precision: ▪AutonoMe: The first automated, disposable, pre-loaded IOL delivery system, designed for seamless and precise implantation of Clareon IOLs; and ▪UltraSert: Combines the control of manual systems with the safety and efficiency of a pre-loaded injector, offering enhanced ease of use. Advanced Technology IOLs (ATIOLs), such as trifocal and EDOF lenses, provide significant patient benefits beyond standard monofocal IOLs, including improved vision at multiple distances or a broader range of focus. However, ATIOL adoption varies globally due to reimbursement and pricing models, with the US offering partial coverage through Medicare and commercial insurers. Outside the US, payment models are shaped by local healthcare policies. Overall, our IOL portfolio is designed to deliver superior clinical outcomes, enhance patient satisfaction, and simplify surgical workflows, ensuring that surgeons can address a wide array of patient needs with confidence. To provide convenience, efficiency and value for ophthalmic surgeons, Alcon offers Custom Pak surgical procedure packs for use in ophthalmic surgery. Unlike conventional surgical procedure packs, our Custom Paks allow individual surgeons to customize the products included in their pack, which results in less waste in the environment. Our Custom Paks include both our single-use products as well as third-party items not manufactured by Alcon. We believe that our Custom Pak offering allows ophthalmic surgeons to improve their efficiency in the operating room, while avoiding the complexity and cost of having to kit surgical items for each respective procedure. We offer more than 10,000 configurations of our Custom Paks globally. 38 Our vitreoretinal surgical portfolio is among the most comprehensive in the industry, supporting procedures for the back of the eye in nearly every market where we operate. For vitrectomy procedures, we have marketed the Constellation Vision System globally since 2008. In the second quarter of 2025, we introduced UNITY VCS, the next-generation platform replacing Constellation. Unity VCS integrates Hypervit 30K technology, delivering 1.5x faster vitreous cutting rates to reduce surgical time while maintaining precision and control. Like its predecessor, UNITY VCS is designed to streamline workflows and enhance efficiency across the surgical process, reflecting our commitment to innovation and improved patient outcomes. Beyond our surgical platforms, we offer a full line of vitreoretinal products, including: •Procedure packs, lasers and handheld microsurgical instruments; •Grieshaber and MIVS disposable retinal surgery instruments; •Scissors, forceps and micro-instruments in multiple gauge sizes; and •Medical-grade vitreous tamponades for replacing vitreous humor during retinal procedures We continue to advance our portfolio with smaller gauge instruments (27+) and higher-speed vitrectomy probes. For example, our Hypervit probes, operating at 20,000 cuts per minute (cpm), help minimize traction that can cause iatrogenic tears and post-operative complications. Our refractive products include lasers, disposable patient interfaces used during laser vision correction procedures, technology fees and diagnostic devices necessary to plan the refractive procedures. Our WaveLight refractive suite includes the EX500 excimer laser, designed to reshape the cornea, and the FS200 femtosecond laser, designed to create a corneal flap and to deliver laser refractive therapy as part of the LASIK refractive procedure. Our refractive portfolio also includes Contoura Vision, powered by the WaveLight Topolyzer VARIO diagnostic device, and the recently launched WaveLight Plus, our most advanced LASIK treatment designed to provide surgeons with the ability to perform more personalized laser procedures for patients with near-sightedness or near-sightedness with astigmatism. Vision Care Our Vision Care portfolio comprises daily disposable, reusable and color-enhancing contact lenses, cell therapies to treat ocular diseases and a comprehensive portfolio of ocular health products, including products for dry eye, ocular allergies, glaucoma and contact lens care, as well as ocular vitamins and redness relievers. For the year ended December 31, 2025, net sales of our contact lens and ocular health products were $2.8 billion and $1.8 billion, respectively. We serve our customers and patients through optometrists, ophthalmologists and other eye care professionals, retailers, optical chains and pharmacies, as well as distributors that resell directly to smaller retailers and eye care professionals, who sell the products to end-users. The vision care market is primarily private pay, with patients substantially paying for contact lenses and ocular health products out-of-pocket. Partial reimbursement is available in some countries for visits to eye care professionals and a portion of either spectacle or contact lens costs. Sales of our contact lens and ocular health products are influenced by optometrist, ophthalmologist and other eye care professional recommendations, our marketing and consumer education efforts and consumer preferences. In addition to price, contact lenses compete on functionality, design and comfort, while ocular health products compete largely on 39 product attributes, brand familiarity and professional recommendations. For our contact lens and ocular health products, we typically compete in the premium price segments of the market and we use improvements in functionality, design and consumer convenience to maintain our pricing position over time. Alcon is the second-largest company in the branded contact lens market by 2025 market share and the leading manufacturer of daily disposable silicone hydrogel (SiHy) lenses in the US. This leadership is driven by our core brands: TOTAL, PRECISION1, DAILIES AquaComfort PLUS and Air Optix. TOTAL Our TOTAL lenses feature water gradient technology that reduces end-of-day dryness by achieving nearly 100% water content at the lens surface. Positioned as a super-premium offering, the line includes: •DAILIES TOTAL1: The first and only water gradient daily disposable lens. •DAILIES TOTAL1 multifocal: Our multifocal version supports growth in the presbyopia segment, which we believe represents a multibillion-dollar opportunity. •TOTAL30: A premium reusable (30 day) lens to encourage trade-up to next-generation technology. •TOTAL30 toric and multifocal: We introduced toric and multifocal versions of TOTAL30 in 2023, and we expect to launch a TOTAL30 multifocal toric version to complete the family. PRECISION Our PRECISION line of lenses is our mainstream disposable SiHy lens, priced between our super-premium DAILIES TOTAL1 and value-focused DAILIES AquaComfort PLUS. It offers precise vision, dependable comfort and easy handling. ▪PRECISION1: Our mid-priced daily disposable silicone hydrogel (SiHy) lens. ▪PRECISION1 for Astigmatism: After launching PRECISION1 spherical lenses, we introduced a toric version featuring the PRECISION BALANCE 8|4 design for stability. Studies show 47% of patients need astigmatism correction, but fewer than 15% wear toric lenses—creating significant growth potential. ▪PRECISION7: Our newly launched, first weekly replacement lens, featuring the ActivFlo re-wetting system for clear vision and comfort. We believe a 7-day replacement schedule will be easier to remember than a two-week schedule. ▪PRECISION7 for Astigmatism: We launched Precision7 for Astigmatism with the launch of the sphere modality. This lens benefits from the same proprietary PRECISION BALANCE 8|4 design for lens stability. DAILIES AquaComfort PLUS Our most affordable daily disposable lens, available in monofocal, toric and multifocal options. It releases moisture with every blink for reliable comfort—ideal for value-conscious wearers seeking simplicity. Air Optix Our monthly replacement line includes SiHy lenses in monofocal, toric and multifocal options, plus Air Optix Colors and Air Optix plus HydraGlyde. HydraGlyde combines SmartShield technology and a moisture matrix for deposit protection and lasting hydration. We continue to see growth in our contact lens portfolio from: •Trade-up to premium lenses; •Expansion of toric and multifocal offerings; and •Increased penetration in emerging markets. 40 Our ocular health portfolio includes leading brands such as: •Systane – artificial tears and dry eye products •Pataday – eye allergy relief drops •Opti-Free and Clear Care – multi-purpose and hydrogen peroxide disinfecting solutions Leadership in Dry Eye Care Alcon is a global leader in artificial tears, driven by a focus on product performance and innovation under the Systane brand. The Systane portfolio offers a full range of solutions for temporary relief of burning and irritation caused by dry eye, including options for daily and nighttime use and for contact lens-related discomfort. Demand for preservative-free eye drops continues to grow. Our multi-dose preservative-free (MDPF) products, Systane Ultra, Systane Hydration and Systane Complete, deliver effective relief without preservatives, meeting a key need for eye care professionals. In 2025, we launched Systane Pro, a new formulation combining nano-lipids from Systane Complete with hyaluronic acid (HA) to address more severe dry eye symptoms. It is the first Systane product to feature both HA and lipids, offering comprehensive relief for all types of dry eye. Allergy Relief Previously prescription-only, the Pataday family became available over the counter in the US in 2020. These products—Pataday Twice Daily Relief, Pataday Once Daily Relief and Pataday Once Daily Extra Strength—contain olopatadine, the number 1 doctor-prescribed ingredient for eye allergy relief. Ophthalmic Pharmaceuticals In 2021, we began expanding in the ophthalmic pharmaceutical space by acquiring the exclusive US commercialization rights to Simbrinza, indicated for reducing elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Then, in 2022, we expanded further by acquiring Eysuvis (short-term treatment of dry eye disease) and Inveltys (post-operative inflammation and pain treatment) followed by the acquisition of Aerie Pharmaceuticals, Inc. The Aerie acquisition included two commercialized products: Rhopressa, a Rho kinase inhibitor for open-angle glaucoma and ocular hypertension, and Rocklatan, a fixed-dose combination of latanoprost and netarsudil. In 2025, we launched TRYPTYR (acoltremon ophthalmic solution) 0.003%, a next-generation therapy for dry eye disease that is a first-in-class TRPM8 receptor agonist for the treatment of the signs and symptoms of Dry Eye Disease (DED) that rapidly stimulates natural tear production as early as Day 1. TRYPTYR is designed to address both the inflammatory and neuropathic components of dry eye, offering a differentiated mechanism of action compared to traditional lubricants or corticosteroids. It works by modulating ocular surface inflammation while targeting neural pathways associated with ocular discomfort, providing potentially faster relief for patients. TRYPTYR represents a significant step forward in our commitment to advancing dry eye care through science-driven innovation. Contact Lens Care Alcon is also a market leader in contact lens care, offering: •Opti-Free PureMoist – multi-purpose disinfecting solution •Clear Care and AOSEPT PLUS – hydrogen peroxide disinfecting solutions These products remove harmful microorganisms from contact lenses and include rewetting drops to improve comfort. Our contact lens care business benefits from strong synergies with our contact lens portfolio. Additional Ocular Health Products Our portfolio also includes: 41 •Tears Naturale and Genteal – artificial tears and dry eye products •Naphcon-A and Zaditor – allergy relief drops •ICAPS and Vitalux – ocular health vitamins Principal Markets Alcon serves consumers and patients in over 140 countries and territories worldwide. The US is our largest market with 45% of our net sales in 2025. See Note 4 to the Consolidated Financial Statements for net sales by segment and geography for each of the last three fiscal years. US sales of the vast majority of our products are not subject to material changes in seasonal demand; however, sales of certain of our vision care products, including those for allergies and dry eye, are subject to seasonal variation. In addition, sales of our surgical equipment are also subject to variation based on hospital or clinic purchasing cycles. Research and Development Innovation drives every aspect of our business as we strive to deliver new, best-in-class products for customers and patients. From early-stage discovery to clinical deployment, our global research and development (R&D) capabilities span clinical research, optical design, material and surface chemistry, software development, automation and equipment platform engineering. We invested approximately $990 million, $876 million and $828 million in research and development in 2025, 2024 and 2023, respectively. Our research and development organization employs more than 2,100 individuals, including physicians, optometrists and PhDs, who bring extensive experience in ophthalmology and product development. Supporting Innovation and Product Development To accelerate R&D and drive efficiency, we have launched our Product Development Productivity initiative to streamline processes, integrate digital tools and remove barriers across the product life cycle. These improvements are expected to shorten development cycles and make launches more predictable. Our R&D center in Bengaluru, India, continues to grow as a strategic hub and is now home to more than 400 associates, spanning six sub-functions and 70+ specialized capabilities. Expanding expertise in artificial intelligence (AI), machine learning, chip design and data annotation is enabling better insights, faster development and enterprise-wide digital transformation. Since opening in 2024, our Fort Worth research clinic also continues to advance new studies that support clinical validation for emerging therapies and technologies. We regularly review and refine our operating model to optimize efficiency and productivity. Across our Surgical and Vision Care pipelines, we have more than 84 pipeline projects in process as of December 31, 2025, including 56 that have achieved positive proof of concept or are undergoing regulatory review. In addition to our in-house research and development capabilities, as part of our efforts to pursue strategic research and development partnerships with third parties, our dedicated BD&L team completed 21 BD&L transactions in 2025. Key Achievements in 2025 In 2025, we expanded into new therapeutic areas, including regenerative medicines, digital diagnostics and precision laser technology. This momentum is reflected in several major product launches and strategic acquisitions that have broadened our capabilities and reinforced our leadership across ophthalmology. Among this year’s milestones: •Clareon PanOptix Pro IOL: The first US launch featuring ENLIGHTEN NXT technology, which is designed to maximize light utilization and minimize scatter, delivering uninterrupted light distribution across the full visual range. •UNITY Vitreoretinal Cataract System (VCS) and UNITY Cataract System (CS): Next-generation surgical systems designed to enhance cataract and vitreoretinal procedures with first-to-market innovations like UNITY 4D Phaco, HYPERVIT 30K, and the UNITY Intelligent Fluidics system. •TRYPTYR (acoltremon ophthalmic solution): A first-in-class prescription treatment for dry eye disease that achieved statistically significant tear production improvements (p < 0.0001), addressing a major unmet clinical need. •Voyager DSLT: The only Direct Selective Laser Trabeculoplasty device for glaucoma and ocular hypertension, designed to improve access and adoption for first-line laser treatment. 42 •SYSTANE PRO PF: A triple-action, long-lasting and preservative-free dry eye solution that advances patient comfort and ocular surface health. We also expanded the reach of WaveLight Plus, the world’s first fully personalized LASIK treatment, to the US and Canada. Using ray tracing to create a “digital eye twin,” this technology allows ophthalmologists to customize procedures to each eye’s optical fingerprint. Clinical results have been exceptional: 100% of myopic eyes achieved 20/20 vision at three months post-procedure, 89% reached 20/16 and 50% achieved 20/12.5. These outcomes redefine the frontier of refractive surgery. Together, these advances reflect a sharper innovation focus: combining AI-driven analytics, regenerative science and next-gen device engineering to deliver transformative solutions for surgeons and patients alike. Acquisitions and Strategic Partnerships In addition to R&D, we completed certain strategic acquisitions that have extended our reach across vision correction, diagnostics, surgical technology, regenerative medicine and retinal therapy. As a global leader, we are committed to supporting an ecosystem of disruptive and incremental innovation from internal and external sources. The Alcon Seed Fund (ASF) drives innovation in eye care by identifying and investing in early- and mid-stage technologies positioned to advance ophthalmology. In 2025, ASF partnered with the Association for Research in Vision and Ophthalmology to support the Eye Pitch Live event, which gives entrepreneurs the opportunity to compete for up to $1 million in investment, helping to accelerate disruptive ideas in therapeutic and diagnostic solutions. ASF’s scouting and technology evaluation efforts spanned hundreds of innovative opportunities. In total, ASF invested in 16 projects in 2025, bringing the active portfolio to 25 engagements. These efforts underscore ASF’s role in Alcon’s innovation strategy, providing early access to transformative technologies and fostering partnerships that can shape the future of eye care. Advancing Vision Science We also advanced scientific collaboration in 2025 through the Alcon Research Institute (ARI), one of the world’s largest corporate-funded vision research organizations. This year, ARI’s annual scientific meeting, the Steven M. Podos Colloquium, convened global vision leaders under the theme “Next Generation Gene Therapy Strategies,” continuing its tradition of awarding approximately $1 million in grants to senior investigators, young scientists and clinicians. Marketing and Sales Alcon conducts sales and marketing activities throughout the world. During the year ended December 31, 2025, 45% of our sales were in the US. We are present in every significant market in the world where ophthalmology and optometry are practiced, with operations in 56 countries supported by over 4,100 associates dedicated to direct sales and with products sold in over 140 countries and territories. Our global commercial capability is organized around sales and marketing organizations dedicated to our Surgical and Vision Care businesses and we customize these efforts to the medical practice needs of each customer. In addition to direct promotion of our products, our sales representatives provide customers with access to clinical education programs, data from clinical studies and technical service assistance. Our selling models also include focused efforts in key channels, including strategic accounts, key accounts and pharmacies. In each of our markets, we rely on our strong relationships with ECPs to attract and retain customers. We engage healthcare professionals to serve as clinical consultants, to participate on advisory boards and to conduct presentations regarding our products. In addition, we have established or sponsor several long-standing programs that provide training and education to eye care professionals, including providing training support at approximately 45 state-of-the-art interactive training centers around the world. These facilities introduce ophthalmologists to our surgical equipment and cataract products through hands-on training in surgical techniques while exposing them to leading ophthalmologists. In our Surgical business, our marketing efforts are supported by global advertising campaigns, claims from clinical registration and post-approval studies and by the participation of marketing and sales representatives in regional and global medical conferences. Technical service after the sale is provided using an integrated customer relationship management system in place in many markets. All of our technical service in the US, and a high percentage of that service outside the US, is provided by service technicians employed directly by Alcon. In countries where we do not have local operations or a scientific office, we use distributors to sell and handle the physical distribution of our products. Within our Surgical business, the practices of our marketing and sales representatives continue to change to meet emerging market trends, namely consolidation of providers, increasing pricing pressures, proliferation of smaller competitors, increasing 43 demands for outcome evidence and a shift from relationship-based selling orientated toward physicians versus professional economic buyers focused on cost. In our Vision Care business, we support our products with direct-to-consumer and ECP-oriented marketing campaigns, including advertising, promotions and other marketing materials, and with retailer-focused marketing and promotional materials. The fast-evolving landscape for our Vision Care business varies significantly by country. Three key trends in marketing and sales help drive the continuing evolution of our Vision Care business: •Internet-based purchasing is increasing, as online players grow and the internet plays a bigger role as a source of consumer information and a platform for price referencing; •Channel consolidation is accelerating, as chains grow in size and vertically integrate; and •Independent eye care professionals vary in influence, as many align more closely with retailers. We see an opportunity to leverage digital technology to address pain points experienced by consumers and patients in existing paths to purchase. We also intend to continue investing and innovating in digital capabilities to develop new business models and practice implementation support in response to channel shifts and increases in direct-to-consumer influence. While we market all of our products by calling on medical professionals, direct customers and distribution methods differ across our business lines. Surgical products are sold directly to hospitals and ambulatory surgical centers, although we sell through distributors in certain markets outside the US where we do not have local operations or a scientific office. In many countries, contact lenses are available only by prescription. Our contact lenses can be purchased from eye care professionals, optical chains and large retailers, subject to country regulation. Our ocular health products can be found in major drugstores, pharmacies, food stores and mass merchandising and optical retail chains globally, with access subject to country regulations, including free-sale, pharmacy-only and prescription regulations. No single customer accounted for more than 10% of our global sales in 2025. Manufacturing, Quality and Supplies Manufacturing We generally organize our manufacturing facilities along product categories, with most plants being primarily dedicated to the manufacture of either our Surgical or Vision Care product offerings. As of December 2025, we employed approximately 4,800 people to manufacture surgical products at nine facilities in the US, Belgium, Switzerland, Indonesia, Ireland and Germany and approximately 4,400 people to manufacture Vision Care products at seven facilities in the US, Germany, Singapore and Malaysia. Our functional division of plants reflects the unique differences in regulatory requirements governing the production of surgical medical devices as well as the different technical skills required of associates in these manufacturing environments. All of our manufacturing plants are ISO 13485:2016 and ISO 14001:2015 certified. Currently, we manufacture approximately 90% of our products internally and rely on third-party manufacturers for a limited number of products. The goal of our supply chain strategy is to efficiently produce and distribute high quality products. To that end, we employ cost-reduction programs, known as continuous improvement programs, involving activities such as cycle-time reductions, efficiency improvements, automation, plant consolidations and procurement savings programs as a means to reduce manufacturing and component costs. For example, in Vision Care, in an effort to reduce the cost per contact lens, we have implemented programs designed to reduce the time it takes to ramp to peak production levels for the newly installed manufacturing lines. To comply with good manufacturing practices and to improve the skills of our associates, we train our direct labor manufacturing staff throughout the year. Our professional associates are trained in various aspects of management, regulatory and technical issues through a combination of in-house seminars, local university classes and trade meetings. The manufacture of our products is complex, involves advanced technology and is heavily regulated by governmental health authorities around the world. Risks inherent to the medical device and pharmaceutical industries are part of our operations. If we or our third-party manufacturers fail to comply fully with regulations, there could be a product recall or other shutdown or disruption of our production activities. We have implemented a global manufacturing strategy to maximize business continuity in case of such events or other unforeseen catastrophic events. Quality Product quality and patient safety are vitally important for Alcon and our industry. Our customers and patients must always feel safe when using our products. Our Quality Management Systems group ("QMS") is responsible for establishing and maintaining a robust and compliant quality control system across Alcon. QMS regularly monitors industry trends, as 44 well as global and regulatory changes, and adjusts our processes and procedures to adhere to current standards and best practices. In addition, our Quality Compliance group audits our internal processes and suppliers for compliance with approved processes and procedures. Supplies The components used in certain of our Surgical products, such as viscoelastics, and our ocular health products, such as our products for dry eye and pharmaceuticals, are sourced from facilities that meet the regulatory requirements of applicable health regulatory authorities. Because of the proprietary nature and complexity of the production of these components, a number of them are only available from a single or limited number of health regulatory authority-approved sources. The majority of active chemicals, biological raw materials and selected inactive chemicals used in our products are acquired pursuant to long term supply contracts. When we rely upon a sole source or limited sources of supply for certain components, we try to maintain a sufficient inventory consistent with prudent practice and production lead-times and to take other steps necessary to ensure our continued supply. The prices of our raw materials are generally stable; however, we continue to monitor established indices for key raw materials and negotiate any price impact with the supplier. Human Capital Management Alcon's culture is summarized in the Alcon Blueprint. The Alcon Blueprint includes Alcon's foundational principles and values and behaviors and serves as the bedrock for how we attract, develop and retain top talent. We seek a range of talents and perspectives that embody our values and contribute to our mission to help people to See Brilliantly. Our talent acquisition process encompasses all facets of sourcing, attracting, assessing, selecting and onboarding of new associates. Alcon focuses on the care and growth of associates through learning and development, performance feedback, career progression and a focus on associate engagement – all while ensuring competitive compensation and benefits. Our Chief Human Resources Officer, working with various groups with human resources, develops systems and processes to support Alcon's ability to attract and retain the best talent while fostering a culture of inclusion. Intellectual Property We strive to protect our investment in the research, development, manufacturing and marketing of our products through the use of patents, trademarks, copyrights, designs, trade secrets and other intellectual property. We own or have rights to a number of patents, trademarks, copyrights, designs, trade secrets and other intellectual property directly related and important to our businesses. As of December 31, 2025, we owned or had rights to approximately 2,650 patent families. We believe that our patents are important to our business but that no single patent, or group of related patents, currently is of material importance in relation to our business as a whole. Our strategy is to develop patent portfolios for our research and development projects in order to obtain market exclusivity for the innovative features of our products in our major markets. The scope and duration of protection provided by a patent can vary significantly from country to country. However, even after the expiration of all patents covering a product, we may continue to derive commercial benefits from such product. When appropriate, we will enforce our intellectual property rights to ensure that we are receiving the protections they afford us. Similarly, we will staunchly defend our right to develop and market products against unfounded claims of infringement by others. We will aggressively pursue or defend our position in the appropriate courts if the dispute cannot otherwise be promptly resolved. In addition to our patents and pending patent applications in the US and selected non-US markets, we rely on proprietary know-how and trade secrets in our businesses and work to ensure the confidentiality of this information, including through the use of confidentiality agreements with associates and third parties. In some instances, we also acquire, or obtain licenses to, intellectual property rights that are important to our businesses from third parties. All of our major products are sold under trademarks that we consider in the aggregate to be important to our businesses as a whole. We consider trademark protection to be particularly important in the protection of our investment in the sales and marketing of our vision care and contact lens and ocular health products. The scope and duration of trademark protection varies widely throughout the world. We also rely on design and copyright protection in various jurisdictions to protect the physical appearance of our surgical and diagnostic equipment and the software and printed materials our business relies upon, including software used in our surgical and diagnostic equipment. The scope and duration of design and copyright protection for these materials also varies widely throughout the world. 45 Competition The eye care industry is highly competitive and subject to rapid technological change and evolving industry requirements and standards. We compete with a number of different companies across our two business segments—Surgical and Vision Care. Companies within our industry compete on technological leadership and innovation, quality and efficacy of their products, relationships with eye care professionals and healthcare providers, breadth and depth of product offerings and pricing. The presence of these factors varies across our Surgical and Vision Care product offerings. Our principal competitors also sometimes form strategic alliances and enter into co-marketing agreements in an effort to better compete. We face strong local competitors in some markets, especially in developed markets, such as the US, Western Europe and Japan. Surgical The surgical market is highly competitive. Superior technology and product performance give rise to category leadership in the surgical market. Service and long term relationships are also key factors in this competitive environment. Surgeons rely on the quality, convenience, value and efficiency of a product and the availability and quality of technical service. We primarily compete with Carl Zeiss Meditec AG, Bausch & Lomb Incorporated, Hoya Corporation, Glaukos Corporation and Johnson & Johnson in the surgical market. We expect to compete against companies that offer alternative surgical treatment methodologies, including multifocal, tunable and accommodating ATIOL approaches, and companies that promote alternative approaches for responding to the conditions our products address. At any time, our known competitors and other potential market entrants may develop new devices or treatment alternatives that may compete directly with our products. In addition, they may gain a market advantage by developing and patenting competitive products or processes earlier than we can or by obtaining regulatory approvals / clearances or market registrations more rapidly than we can. We believe that the principal competitive factors in our surgical market include: •disruptive product technology; •alternative treatment modalities; •breadth of product lines and product services; •ability to identify new market trends; •acceptance by ophthalmic surgeons; •customer service and clinical support; •regulatory status and speed to market; •price; •product quality, reliability and performance; •capacity to recruit engineers, scientists and other qualified associates; •digital initiatives that change business models; •reimbursement approval from governmental payors and private healthcare insurance providers; and •reputation for technical leadership. Shifts in industry market share can occur in connection with product issues, physician advisories, safety alerts and publications about our products. In the current environment of managed care, with consolidation among healthcare providers, increased competition and declining reimbursement rates, there is also increasing pressure on price. Vision Care The vision care market is also highly competitive, and our primary competitors are Johnson & Johnson, Bausch & Lomb Incorporated and The Cooper Companies, Inc. In addition, AbbVie, Inc. (Allergan) is a competitor in ocular health. We believe our DAILIES TOTAL1 provides the most advanced daily disposable SiHy contact lens with its advanced "water gradient" technology and PRECISION1 provides a mainstream daily disposable SiHy lens with aqueous extraction and surface treatment. While daily disposable contact lenses remain appealing to many lens wearers, approximately two-thirds of contact lens wearers globally choose reusable lenses. Despite this preference, innovation within the reusable lens segment has lagged behind daily disposable lenses over the past 10 years. TOTAL30 and PRECSION7 product families are 46 designed to change that by delivering a premium offering within the monthly and 1-week reusable space, respectively. We also compete with manufacturers of eyeglasses and with surgical procedures that correct visual defects. We believe that there are opportunities for contact lenses to attract new customers in the markets in which we operate, particularly in markets where the penetration of contact lenses in the vision correction market is low. Additionally, we compete with new market entrants with disruptive distribution models that could potentially innovate to challenge traditional models, including the eye care professional channel in which we have a significant presence. We also believe that laser vision correction is not a significant threat to our sales of contact lenses based on the growth of the contact lens market over the past decade and our involvement in the laser vision correction market through our Surgical business. In ocular health, the market is characterized by competition for market share through the introduction of products that provide superior effectiveness and reduced burden for treating eye conditions. Recommendations from eye care professionals and customer brand loyalty, as well as our product quality and price, are key factors in maintaining market share in these products. Government Regulation Overview Our businesses are subject to varying degrees of governmental regulation in the countries in which we operate, and the general trend is toward increasingly stringent regulation. In the US, the drug, device and dietary supplement industries have long been subject to regulation by various federal and state agencies, primarily as to product safety, efficacy, manufacturing, advertising, labeling and safety reporting. The exercise of broad regulatory powers by the FDA continues to result in increases in the amounts of testing and documentation required for the commercialization of regulated products and a corresponding increase in the expense of product introduction. Similar trends are also evident in the EU and in other markets throughout the world. In addition to market access regulation, our businesses are also subject to other forms of regulation, such as those relating to anti-bribery, data privacy and cybersecurity, social impact and sustainability and trade regulation matters. We are also subject to regulations related to environmental and safety matters, which are discussed in greater detail in "Item 4.D. Property, Plants and Equipment—Environmental Matters". Product Approval and Monitoring Most of our products are regulated as medical devices in the US and the EU. These jurisdictions each use a risk-based classification system to determine the type of information that must be provided to the local regulatory bodies in order to obtain the right to market a product. In the US, the FDA classifies devices into three classes: Class I (low risk), Class II (moderate risk) and Class III (high risk). Many of our devices are Class II or III devices that require premarket review by the FDA. The primary pathway for our Class II devices is FDA clearance of a premarket notification under section 510(k) of the FDCA. With a 510(k) submission, the manufacturer must submit a notification to the FDA that includes performance data that establish that the product is substantially equivalent to a "predicate device", which is typically another Class II previously-cleared device. Our Class III devices require FDA approval of a Premarket Approval application. With a Premarket Approval application, the manufacturer must submit extensive supporting evidence, including clinical data, sufficient to demonstrate a reasonable assurance that the device is safe and effective for its intended use. With respect to our drug products in development or currently marketed, approval by the FDA is generally required to market those products in the US. To receive such approval, the FDA requires extensive clinical trials to demonstrate safety and effectiveness and evidence that our manufacturing processes comply with current Good Manufacturing Practices. Following approval we must have systems in place to continuously monitor the safety of distributed dug products and confirm compliance with the Drug Supply Chain Security Act. In the EU, CE marking is required for all medical devices sold. Prior to affixing the CE Mark, the manufacturer must demonstrate that their device conforms to the relevant essential requirements of the EU's Medical Device Directive through a conformity assessment procedure. The nature of the assessment depends upon the classification of the device. The method of assessing conformity varies depending on the type and classification of the product. For most Class I devices, the assessment is a self-certification process by the manufacturer. For all other devices, the conformity assessment procedure requires review by a "notified body", which is authorized or licensed to perform conformity assessments by national device regulatory authorities. The conformity assessment procedures require a technical review of the manufacturer's product and an assessment of relevant clinical data. Notified bodies may also perform audits of the manufacturer's quality system. If satisfied that the product conforms to the relevant essential requirements, the notified body issues a certificate of conformity, which the manufacturer uses as a basis for its own declaration of conformity and application of the CE mark. The EU published a new Medical Device Regulation, or EU MDR, in 2017, which imposes significant additional requirements on medical device manufacturers, including with respect to clinical evaluation, labeling, technical documentation and 47 quality management systems. Medical devices placed on the market in the EU after May 2021 require certification according to these new requirements, except those legacy devices with valid CE certificates, issued pursuant to the Medical Device Directives before May 2020, which can be placed on the market until those certificates expire, at the latest in May 2024, provided there are no significant changes in the design or intended purpose of the device. In March 2023, the European Parliament officially approved and published the European Commission's proposal to extend the date of compliance out by three to four years depending on the class of medical device, which now extends the date of compliance from 2024 until 2027 or 2028, provided that the manufacturer of the legacy product has submitted a formal application for a conformity assessment by May 2024. This extension is intended to ensure that the various notified bodies have enough time to review legacy products for compliance with the new regulations. The additional requirements of the EU MDR legislation did not change; however the “sell off” date has been removed. We also market products that are regulated in other product categories, including lasers, prescription and over-the-counter drug products, dietary supplements and medical foods. These products are also subject to extensive government regulation, which vary by jurisdiction. For example, in the US, our drug products must either be marketed in compliance with an applicable over-the-counter drug monograph or receive FDA approval of a New Drug Application. In the European Economic Area, our drug products must receive a marketing authorization from the competent regulatory authorities before they may be placed on the market. There are various application procedures available, depending on the type of product involved. Clinical trials may be required to support the marketing of our drug or device products. In the US, clinical trials must be conducted in accordance with FDA requirements, including informed consent from study participants, and review and approval by an institutional review board ("IRB"), among other requirements. Additionally, FDA authorization of an Investigational Device Exemption ("IDE") application must be obtained for studies involving significant risk devices prior to commencing the studies. In the EU, clinical trials usually require the approval of an ethics review board and the prior notification to, or authorization of the study from, the regulatory authority in each country in which the trial will be conducted. Regulations of the FDA and other regulatory agencies in and outside the US impose extensive manufacturing requirements as well as postmarket compliance and monitoring obligations on our business. The manufacture of our device, drug and dietary supplement products is subject to extensive and complex good manufacturing practice and quality system requirements, which govern the methods used in, and the facilities and controls used for, the design, manufacture, packaging, storage, handling and servicing of our products. We are also subject to requirements for product labeling and advertising, sampling, recordkeeping, reporting of adverse experiences and other information to identify potential problems with our marketed products, as well as recalls and field actions. We are also subject to periodic inspections for compliance with these requirements. We expect this regulatory environment will continue to require significant technical expertise and capital investment to ensure compliance. Medical device, drug and dietary supplement manufacturers are also subject to taxes, as well as application, product, user, establishment and other fees. Price Controls The prices of our medical devices and drugs that require prescriptions or are reimbursed through payments to providers for services using our devices or drugs are subject to reimbursement programs and price control mechanisms that vary from country to country. Due to an evolving policy environment and governmental budget constraints, we expect these programs and mechanisms to remain robust and to potentially even be strengthened or expanded. As a result, such programs and mechanisms could have a negative influence on the prices we are able to charge for our products, particularly those used in cataract, vitreoretinal and glaucoma surgeries. Regulations Governing Reimbursement In the US, patient access to our drug and device products that require a prescription or are included in provider service payments is determined in large part by the coverage and reimbursement policies of third-party health payors, including health insurers and government programs such as Medicare and Medicaid. Both government and commercial health insurers are increasingly focused on containing health care costs and have imposed, and are continuing to consider, additional measures that exert downward pressure on device and drug prices. For example, the US recently passed the Inflation Reduction Act, which makes significant changes to how drugs are covered and paid for under the Medicare program, including the creation of financial penalties for drugs whose prices rise faster than the rate of inflation, redesign of the Medicare Part D program to require manufacturers to bear more of the liability for certain drug benefits and the introduction of government price-setting for certain Medicare Part D drugs starting in 2026. 48 Outside the US, global trends toward cost-containment measures likewise may influence prices for our healthcare products in those countries. Adverse decisions relating to either coverage for our products or the amount of reimbursement for our products, could significantly reduce the demand for our products and the prices that our customers are willing to pay for them. Health Care Fraud and Abuse; Anti-Bribery We are subject to health care fraud and abuse and anti-bribery laws and regulations in the US and around the world, including state and federal anti-kickback, anti-self-referral and false claims laws in the US. In addition, the FCPA is increasingly used to prosecute relationships between US companies and healthcare providers outside of the US. These laws are complex and subject to evolving interpretation by government agencies and courts. For example, in the US, relationships between manufacturers of products paid for by federal and state healthcare programs and healthcare professionals are regulated by a series of federal and state laws and regulations, such as the Federal Anti-Kickback Statute (and similar US state laws), that restrict the types of permissible financial relationships with referral sources. In addition, transparency and disclosure requirements, such as the US Physician Payments Sunshine Act (Open Payments Program), mandate public reporting of transfers of value to healthcare professionals, increasing compliance and reputational risks. In the US, the False Claims Act permits private litigants to pursue lawsuits that can trigger government investigations and result in substantial financial fines and penalties to the defendant, as well as payment of significant financial rewards to the successful private litigants. Whistleblower protections and incentives further heighten the likelihood of investigations and enforcement actions. As discussed in "Item 4.B. Business Overview—Marketing and Sales", we engage in marketing activities targeted at healthcare professionals, which include among others the provision of training programs. If one or more of these activities were found to be in violation of fraud and abuse laws, anti-bribery laws and regulations or any other law or governmental regulation, or there are changes to the interpretation of these laws, we could be subject to, among other things, civil and criminal penalties, damages, fines, exclusion from the Medicare and Medicaid programs and the curtailment or restructuring of our operations. Violations of these laws may also result in corporate integrity agreements, deferred prosecution arrangements or other settlement mechanisms that impose ongoing monitoring and compliance obligations. Data Privacy and Cybersecurity We are subject to certain data privacy and security laws and regulations that continue to evolve, including Swiss privacy laws, the EU GDPR, US HIPAA and state laws, including the CCPA, with respect to some of our products, services and business operations. For example, the GDPR and HIPAA contain enhanced financial and other penalties for noncompliance. The US Federal Trade Commission and state Attorneys General are actively enforcing in the data privacy and cybersecurity space under existing consumer protection laws and newer privacy laws such as the CCPA and FTC Breach Notification Rule. The FDA has also issued further guidance concerning cybersecurity for medical devices. In addition, certain countries have issued or are considering data localization laws, which limit companies' ability to transfer protected data across country borders. Failure to comply with data privacy and cybersecurity laws and regulations can result in enforcement actions, including civil or criminal penalties. Trade Regulation The movement of products, services and investment across borders subject us to extensive trade regulations. A variety of laws and regulations in the countries in which we transact business apply to the sale, shipment and provision of goods, services and technology across borders. These laws and regulations govern, among other things, our import, export and other business activities. We are also subject to the risk that these laws and regulations could change in a way that would expose us to additional costs, penalties or liabilities. Some governments also impose economic sanctions against certain countries, persons or entities. In addition to our need to comply with such regulations in connection with our direct activities, we also sell and provide goods, technology and services to agents, representatives and distributors who may export such items to customers and end-users. Failure by us or the third parties through which we do business to comply with applicable import, export control or economic sanctions laws and regulations may subject us to civil or criminal enforcement action and varying degrees of liability. 49 4.C. ORGANIZATIONAL STRUCTURE Organizational Structure See "Item 4.B. Business Overview” for additional information. Significant Subsidiaries See "Item 6.C. Board Practice” for additional information. 4.D. PROPERTY, PLANTS AND EQUIPMENT Our corporate headquarters is located in Geneva, Switzerland. The principal office for our Swiss and international operations, which is also our registered office, is located in Fribourg, Switzerland, and the principal office for our US operations is located in Fort Worth, Texas. We believe that our current manufacturing and production facilities have adequate capacity for our medium‑term needs. To ensure that we have sufficient manufacturing capacity to meet future production needs, we regularly review the capacity and utilization of our manufacturing facilities. The FDA and other regulatory agencies regulate the approval for use of manufacturing facilities for medical devices and pharmaceuticals, and compliance with these regulations requires a substantial amount of validation time prior to start‑up and approval. Accordingly, it is important to our business that we ensure we have sufficient manufacturing capacity to meet our future production needs. Major Facilities The following table sets forth our most significant production and research and development facilities: Location Size of Site(in m2) Major Activity Fort Worth, Texas 315,200 Production, research and development for Surgical and Vision Care businesses Grosswallstadt, Germany 97,720 Production, research and development for Vision Care business Singapore 93,134 Production for Vision Care business Johns Creek, Georgia 85,166 Production, research and development for Vision Care business Johor, Malaysia 43,900 Production for Vision Care business Irvine, California 40,900 Production, research and development for Surgical business Houston, Texas 37,400 Production for Surgical business Huntington, West Virginia 36,158 Production for Surgical business Batam, Indonesia 35,000 Production for Surgical business Sinking Spring, Pennsylvania 21,800 Production for Surgical business Cork, Ireland 16,300 Production, research and development for Surgical business Erlangen/Pressath/Teltow, Germany 10,700 Production, research and development for Surgical business Puurs, Belgium 8,000 Production for Surgical business Schaffhausen, Switzerland 5,630 Production, research and development for Surgical business Durham, North Carolina 4,200 Research and development for Vision Care business In August 2021, we launched an expansion project of our Grosswallstadt, Germany facility to add three additional contact lens production lines for an anticipated cost of $162 million. Through December 31, 2025, the total amount paid and committed was approximately $149 million. We expect to complete the project by 2027. In April 2021, we launched a further expansion of our Singapore facility to add four additional production lines for contact lenses. This project was completed in September 2024. The total amount paid was $189 million. We approved a further expansion in late 2021 to add three additional production lines and a new building for an expected cost of $314 million. Through December 31, 2025, the total amount paid and committed for this additional expansion was approximately $302 50 million. We expect to complete this expansion in 2027. In late 2023, we commenced an additional expansion to the Singapore facility to add three additional production lines for an expected cost of $157 million. Through December 31, 2025, the total amount paid and committed for this additional expansion was approximately $28 million. We expect to complete this project in 2030. In 2021, we launched an expansion of our Johns Creek, Georgia facility to add two more production lines for contact lenses for $148 million. Through December 31, 2025, the total amount paid and committed was approximately $138 million. We expect to complete the project by 2028. Also, in late 2021, we approved an additional expansion to add one more production line for contact lenses. This additional expansion is expected to cost approximately $73 million and be completed by 2029. Through December 31, 2025, the total amount paid and committed was approximately $58 million. We funded each of the projects discussed above from working capital. Environmental Matters At Alcon, we believe that excellent environmental performance enables us to achieve our purpose of helping people See Brilliantly. We integrate core values of environmental protection into our business strategy to protect the environment, to add value to the business, manage risk and enhance our reputation. We are committed to reducing the environmental impact of our operations, products and services. We strive to minimize waste and emissions, reuse and recycle materials and conserve natural resources, such as energy and water, across our value chain. We are subject to laws and regulations concerning the environment, safety matters and regulation of chemicals in the countries where we manufacture and sell our products or otherwise operate our business. As a result, we have established internal policies and standards that aid our operations in systematically identifying relevant hazards, assessing and mitigating risks and communicating risk information. These internal policies and standards are in place to ensure our operations comply with relevant environmental, health and safety laws and regulations and that periodic audits of our operations are conducted. The potential risks we identify are integrated into our business planning, including investments in reducing safety and health risks to our associates and reducing our impact on the environment. We have also dedicated resources to monitor legislative and regulatory developments and emerging issues to anticipate future requirements and undertake policy advocacy when strategically relevant. Each year, we publish on our website a Social Impact and Sustainability Report that provides additional details regarding our environmental sustainability strategy and highlights the steps we plan to undertake. The information contained on or in connected to our website is not a part of this annual report.