1.800% Notes due 2020:

Issuer:

Novartis Capital Corporation

Guarantor:

Novartis AG

Size:

$1,000,000,000

Maturity Date:

February 14, 2020

Coupon:

1.800%

Interest Payment Dates:

February 14 and August 14, commencing August 14, 2017

Price to Public:

99.609%

Benchmark Treasury:

1.375% due February 15, 2020

Benchmark Treasury Price and Yield:

99-17 / 1.535%

Spread to Benchmark Treasury:

40 bps

Yield:

1.935%

Optional Redemption:

Prior to February 14, 2020, the notes will be redeemable at our option, in whole or in part,

at any time and from time to time at a redemption price equal to the greater of:

·                  100% of the principal amount of the notes to be redeemed; and

·                  the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed that would be due if the notes matured on February 14, 2020,

together with accrued interest to the date of redemption.

The present value will be determined by discounting the remaining principal and interest payments to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), using the applicable rate of T+10 bps.

CUSIP:

66989HAL2

ISIN:

US66989HAL24

Trade Date:

February 14, 2017

Expected Settlement Date:

February 17, 2017 (T+3)

Listing:

None

Anticipated Ratings:

Aa3 by Moody’s Investors Service, Inc.

AA- by S&P Global Ratings

Joint Book-Running Managers:

Citigroup Global Markets Inc.
J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

Credit Suisse Securities (USA) LLC

Goldman, Sachs & Co.

UBS Securities LLC

Co-Managers:

HSBC Securities (USA) Inc.

Mizuho Securities USA Inc.

MUFG Securities Americas Inc.

RBS Securities Inc.

Société Générale

2.400% Notes due 2022:

Issuer:

Novartis Capital Corporation

Guarantor:

Novartis AG

Size:

$1,000,000,000

Maturity Date:

May 17, 2022

Coupon:

2.400%

Interest Payment Dates:

May 17 and November 17, commencing May 17, 2017 (short first coupon)

Price to Public:

99.449%

Benchmark Treasury:

1.875% due January 31, 2022

Benchmark Treasury Price and Yield:

99-18 ¾ / 1.963%

Spread to Benchmark Treasury:

55 bps

Yield:

2.513%

Optional Redemption:

Prior to April 17, 2022 (the “2022 par call date”), the notes will be redeemable at our option, in whole or in part, at any time and from time to time at a redemption price equal to the greater of:

·                  100% of the principal amount of the notes to be redeemed; and

·                  the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed that would be due if the notes matured on the par call date,

together with accrued interest to the date of redemption.

The present value will be determined by discounting the remaining principal and interest payments to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), using the

applicable rate of T+10 bps.

At any time on or after the 2022 par call date the notes will be redeemable at our option, in whole or in part, at any time and from time to time at a redemption price equal to 100% of the principal amount of the notes to be redeemed on that redemption date, together with, in each case, accrued interest to the date of redemption.

CUSIP:

66989HAM0

ISIN:

US66989HAM07

Trade Date:

February 14, 2017

Expected Settlement Date:

February 17, 2017 (T+3)

Listing:

None

Anticipated Ratings:

Aa3 by Moody’s Investors Service, Inc.

AA- by S&P Global Ratings

Joint Book-Running Managers:

Citigroup Global Markets Inc.
J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

Credit Suisse Securities (USA) LLC

Goldman, Sachs & Co.

UBS Securities LLC

Co-Managers:

HSBC Securities (USA) Inc.

Mizuho Securities USA Inc.

MUFG Securities Americas Inc.

RBS Securities Inc.

Société Générale

3.100% Notes due 2027:

Issuer:

Novartis Capital Corporation

Guarantor:

Novartis AG

Size:

$1,000,000,000

Maturity Date:

May 17, 2027

Coupon:

3.100%

Interest Payment Dates:

May 17 and November 17, commencing May 17, 2017 (short first coupon)

Price to Public:

99.109%

Benchmark Treasury:

2.250% due February 15, 2027

Benchmark Treasury Price and Yield:

98-01 / 2.473%

Spread to Benchmark Treasury:

73 bps

Yield:

3.203%

Optional Redemption:

Prior to February 17, 2027 (the “2027 par call date”), the notes will be redeemable at our option, in whole or in part, at any time and from time to time at a redemption price equal to the greater of:

·                  100% of the principal amount of the notes to be redeemed; and

·                  the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed that would be due if the notes matured on the par call date,

together with accrued interest to the date of redemption.

The present value will be determined by discounting the remaining principal and interest payments to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), using the

applicable rate of T+15 bps.

At any time on or after the 2027 par call date the notes will be redeemable at our option, in whole or in part, at any time and from time to time at a redemption price equal to 100% of the principal amount of the notes to be redeemed on that redemption date, together with, in each case, accrued interest to the date of redemption.

CUSIP:

66989HAN8

ISIN:

US66989HAN89

Trade Date:

February 14, 2017

Expected Settlement Date:

February 17, 2017 (T+3)

Listing:

None

Anticipated Ratings:

Aa3 by Moody’s Investors Service, Inc.

AA- by S&P Global Ratings

Joint Book-Running Managers:

Citigroup Global Markets Inc.
J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

Credit Suisse Securities (USA) LLC

Goldman, Sachs & Co.

UBS Securities LLC

Co-Managers:

HSBC Securities (USA) Inc.

Mizuho Securities USA Inc.

MUFG Securities Americas Inc.

RBS Securities Inc.

Société Générale