NOVARTIS AG

), constitute the Operating and Financial Review ( Lagebericht ), as defined by the Swiss Code of Obligations. Unless the context requires otherwise, the words we, our, us, Novartis, Company, and similar words or phrases in this Annual Report refer to Novartis AG and its consolidated affiliates. However, each Novartis affiliate is legally separate from all other Novartis affiliate companies and manages its business independently through its respective board of directors or similar supervisory body or other top local management body, if applicable. Each executive identified in this Annual Report reports directly to other executives of the Novartis affiliate company that employs such executive, or to such company’s board of directors.