2
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this presentation, among others:1 pricing and product initiatives of competitors;2 legislative and regulatory developments and economic conditions; 3 delay or inability in obtaining regulatory approvals or bringing products to market; 4 fluctuations in currency exchange rates and general financial market conditions; 5 uncertainties in the discovery, development or marketing of new products or new uses of existing
products, including without limitation negative results of clinical trials or research projects, unexpected side-effects of pipeline or marketed products;
6 increased government pricing pressures; 7 interruptions in production; 8 loss of or inability to obtain adequate protection for intellectual property rights; 9 litigation;10 loss of key executives or other employees; and11 adverse publicity and news coverage.
Any statements regarding earnings per share growth is not a profit forecast and should not be interpreted to mean that Roche’s earnings or earnings per share for this year or any subsequent period will necessarily match or exceed the historical published earnings or earnings per share of Roche.
For marketed products discussed in this presentation, please see full prescribing information on our website – www.roche.com
All mentioned trademarks are legally protected
4
Q1 2012: Highlights
5 positive late-stage trials and regulatory filings • Avastin in metastatic colorectal cancer: treatment through multiple lines (TML)• T-DM1 in HER2+ metastatic breast cancer (EMILIA)• Herceptin subcutaneous in HER2+ breast cancer (HANNAH)-filed in EU• Actemra in polyarticular-course juvenile idiopathic arthritis (CHERISH)• Actemra in rheumatoid arthritis (ADACTA)
Sales• Group and Pharma: +2%1 (+3%1 excluding Tamiflu)• Diagnostics: +4%1
• Negative currency impact (-3%p)
1 at Constant Exchange Rates
2 Approvals of New Molecular Entities• Erivedge in advanced basal cell carcinoma – approved in US• Zelboraf in metastatic melanoma – approved in EU
Q1 2012: Group salesOn track to meet full-year guidance
51 CER=Constant Exchange Rates
2012 2011 change in %CHF m CHF m CHF CER
Pharmaceuticals Division 8,624 8,712 -1 2
Diagnostics Division 2,403 2,408 0 4
Roche Group 11,027 11,120 -1 2
Q1 2012: Pharma sales driversOncology and Pegasys main growth drivers
6 6Absolute amounts in CHF m at Constant Exchange Rates (CER) average 2011; all growth rates at CER
-150 -100 -50 0 50 100 150
NeoRecormon/Epogin
Boniva/Bonviva
Tamiflu
CellCept
Zelboraf
Xeloda
Actemra/RoActemra
Herceptin
MabThera/Rituxan
Pegasys
InternationalUSJapanWestern Europe
+32%
+7%
+7%
+46%
NA
-24%
-28%
-19%
+15%
-31%
Pharma quarterly growth (excluding Tamiflu)
7Absolute amounts in CHF m at Constant Exchange Rates (CER) average 2011; all YOY growth rates at CER
-,200
-,100
,0
,100
,200
,300
,400
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12
USInternationalWEJapan
CHF
m
+1%
+1%0%
+3% +3%
Q1 2012: US back to strong growthDriven by Oncology and Pegasys
81 CHF m at average 2011 exchange rates; 2CER=Constant Exchange Rates
88
52
38
36
26
22
20
Pegasys
Rituxan
Herceptin
Xeloda
Zelboraf
Actemra
Tarceva
US growth contribution1 Growth2
+144%
+8%
+11%
+31%
NA
+87%
+18%
US: +6%2
Q1 2012: Western EuropeSignificant impact of genericized products
91 CER=Constant Exchange Rates
2,117
2,039
-63
-77 +61
Q1 2011Sales
Q1 2012Sales
BonvivaCellCept
Neorecormon
MirceraOther tail productsPricing pressure
MabTheraRoActemraHerceptinZelborafPegasys -4%1
@2011FX
@2011FX
E7 countries: solid growth despite strong baseOne-off effects in Q1 in China and Russia
10
,0,
200,000,
400,000,
600,000,
800,000,
1000,000,
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12
Brazil
China
India
Turkey
Mexico
RussiaKorea
+5%1
1 CER=Constant Exchange Rates; absolute values in CHF m at average 2011 exchange rates
+15%
+19%
China: Roche outgrowing the market
11
14%
20%24%
32%29%*
19%
16% 16%
17%
0%
5%
10%
15%
20%
25%
30%
35%
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12
RocheChinese market
Source: IMS Hospital Audits, January 2012; * Roche estimate for Q1 in-market sales in China
Securing growth for HER2 franchiseHannaH and EMILIA advancing the standard of care
12
Adjuvant BC Herceptin + chemo Herceptin subcutaneous + chemo (HannaH)Herceptin & pertuzumab + chemo
1st line mBC Herceptin + chemo
T-DM1 & pertuzumab
Herceptin & pertuzumab + chemo(CLEOPATRA)
2nd line mBC Xeloda + lapatinib T-DM1 (EMILIA)
2010 20162012 2013 2014 20152011
Timelines refer to the expected dates of first filing
Established standard of care Potential new standard of care Future standard of care
• DAUPHINE (phII)treatment-naive chronic HepC
Q2 2012: Clinical data to be presented at upcoming meetings
13
EULARBerlin, June 6-9
ASCOChicago, June 1-5
EASLBarcelona, April 18-22
danoprevir
mericitabine
• EMILIA (submitted) pretreated HER2+ mBC
• PhII safety study in HER2+ eBC
• TMLtreatment through multiple lines in mCRC
• AURELIAplatinum resistant ovarian cancer
• ADACTA (submitted)Head-to-Head vs. Humira
• PROPEL, JUMP-C (phII) treatment-naive and failure chronic HepC G1/4
T-DM1
Avastin
Actemra
Virology Oncology Inflammation
• INFORM-SVR (phII, interferon-free combination)treatment-naive and interferon intolerant chronic HepC G1
danoprevir+mericitabine
Sales 47,473 42,531 -10 +1Core operating profit 16,591 15,149 -9 +6
as % of sales 34.9 35.6
Core net financial income -2,272 -1,581 -30 -19Core tax rate in % 21.9 21.3 -0.6 p
Core net income 11,181 10,685 -4 +11as % of sales 23.6 25.1Attributable to Roche shareholders 10,955 10,470 -4 +11
Core EPS (CHF) 12.78 12.30 -4 +11
Operating free cash flow 14,149 13,733 -3 +14% of sales 29.8 32.3 +2.5 p
Free cash flow 4,699 3,904 -17 +21% of sales 9.9 9.2 -0.7 p
2011: Group performance Core EPS growth +11%1
15
CHF m % Change2010 2011 CHF CER
1 CER = Constant Exchange Rates
16,591
-609
-1,140
+1,764*
TamifluAvastin US/WECellCept US/WEBoniva US/WE
sales Profit growthunderlyingbusiness1
Cost savings OperationalExcellence
Core Operating
Profit2011
@ FY10Fx rates
CoreOperating
Profit2010
@ FY10Fx rates
– US healthcare reform incl. excise tax– EU austerity measures– Japan price cuts 2010 +6%
17,643+1,037
2011: Core operating profit developmentProfit growth driven by productivity improvements
16* corresponds to CHF 1,836 m at exchange rates at the time of Operational Excellence announcement;1 including Genentech integration synergies
CHF m
Group core operating profit (CHF bn) and margin
Continuous growth in operating profit and margin
15.116.3 16.6
15.1
33.0% 33.2%34.9% 35.6%
2008 2009 2010 2011
+6% in CER1
1 CER = constant exchange rates17
Continuous increase in dividends and pay-out ratio
18
2.002.50
3.40
4.605.00
6.006.60 6.80
2004 2005 2006 2007 2008 2009 2010 2011
CHF
Average yearly dividend growth (2004-2011): 19%
1 compound annual growth rate
2011Payout Ratio
of 55.3%
Pay-out ratio calculated as dividend per share divided by core earnings per share (diluted); 2011 as proposed by the Board of Directors
19
Debt maturity profileQ1 2012 Evolution
Nominal values @ actual FX rates; *Original net proceeds in CHF
Of the CHF 48.2bn bonds and notes issued to finance the Genentech transaction, cumulative 23.6bn (49%) have been repaid as of 31 Mar 2012 *
0
1
2
3
4
5
6
2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 2035 2039
USD EUR CHF GBP
Repayments in Q1/2012
Refinancing in Q1/2012
CHF bn
Tender ofEUR 782m
Repaymentof CHF
2.2bn atmaturity
21
Roche: Focused on medically differentiated therapies
Generics
Differentiation
Focus
MedTech
OTC
Prem
ium
for
inno
vatio
n
DiaPharma
P&L structure reflecting innovation based strategyPeer group core operating profit margin 2011
22
33%32%
30%29%29%29%28%
24%23%
Eli LillyNovartis
JNJPfizer
MerckGSK
AstraSanofiRoche
R&D % sales Core operating profit margin% sales
M&D+G&A % sales
21%19%
17%16%
15%14%14%
13%12%
Eli LillyRocheMerck
NovartisAstra
SanofiGSK
PfizerJNJ
43%
39%
36%
34%
34%
31%
27%
27%
27%
Pfizer
Astra
Roche
Sanofi
Merck
GSK
JNJ
Novartis
Eli Lilly
Source: Industry success rates - Linda Martin, KMR, Bernstein R&D conference 2011Roche – publically available data, BCG analysis
• Understanding of disease biology
• Leveraging Personalized Healthcare -stratify patient population early on
• Rigorous decision making –transition only most promising projects
R&D productivityExcellence in science key lever to reduce attrition
Phase 1 Phase 2 Phase 3RegistrationPhase 0Research
4%64% 48% 25% 83%67%Probabilityof success -
Launch
Major decision points
Industry success rate 2005-2009
Industry: 4%Roche: 9%
23
Personalised Healthcare is a reality todaySignificant progress in 2011
24
PertuzumabMetastatic Breast Cancer
HER2 expression level
APPROVED
LebrikizumabSevere uncontrolled asthma
Periostin level
ZelborafMetastatic MelanomaBRAF V600E Mutation
T-DM1Metastatic Breast CancerHER2 expression level
Mericitabine and danoprevir Hepatitis C
HCV viral load, genotype
MetMAbNSCLC
Met Status
FILED TO FILE IN 2012
Ph III Ph III Ph III decision in 2012
Roche Diagnostics commitment to PHCPreferred Partner for Companion Diagnostics (CDx)
25
1025 38
70101
169>200
2005 2006 2007 2008 2009 2010 2011
Internalcollaborations1
Externalcollaborations1
• Personalized Healthcare collaborations with more than 30 pharma and biotech companies
• Tissue Diagnostics signs 4 new partnerships- Pfizer (Crizotinib – ALK IHC)- Syndax (Entinostat- E-cadherin)- Aeterna Zentaris (AEZS 108 – LHRH) - Bayer (antibody-drug conjugate)
1 Including R&D collaborations and CDx projects
Roche strategy for post-patent biologics marketplace Actively pursuing multiple strategies
26
Protect high standardsEnforce efficacy and safety standards, defend intellectual property
Act to expand patient access in emerging markets Change from global pricing to tiered pricing, including 2nd brand
Protect
Re-define the standard of care Mode of administration, combination therapies and new drugs
Innovate
Expand
Filings and launches in 2012
OncologyImmunologyCardioMetabolism
T-DM1 HER2+ advanced mBC
27
Tarceva (US)NSCLC EGFR mutation 1st line
Herceptinsc formulation HER2+
AvastinmCRC TML
ActemraRA DMARD IR H2H (EU)
Actemrasc formulation
AvastinmBC 2nd line (EU)
MabTherasc formulation (EU)
LucentisAMD 0.5 mg PRN (US)*
Erivedge (US) adv. basal cell carcinoma
pertuzumabHER2+ mBC 1st line
Zelborafmet. melanoma
Activaseextend. time window AIS (US)
Avastinrelapsed ovarian cancer (EU)
Lucentisdiabetic macular edema (US)
RituxanNHL faster infusion (US)
ActemraDMARD IR (US)
Launches Filed/awaiting launch Planned filings
New Molecular Entities
Additional indications
Actemrapolyarticular JIA
* New dosing regimen for already approved indication
2011: Three New Molecular Entities filedExpanding into selected therapeutic franchises
28
20152012 2013 20142011
aleg
litaz
ar
Met
MA
b
ocre
lizum
ab
T-D
M1
pert
uzum
ab
Zelb
oraf
Eriv
edge
mer
icita
bine
PotentialFilingYear
GA
101
Gly
T-1
Larger(> 1 bn)
Smaller(up to ~1 bn)
Non risk-adjusted
Metabolism
Oncology
Immunology
Neuroscience
Virology
dano
prev
ir2016
lebr
ikiz
umab
Outlook for 2012
29Barring unforeseen events; CER=Constant Exchange Rates; * vs. 2011: CHF 1.8 bn
Sales growth (CER) Group & Pharma: low to mid-single digitDiagnostics: above market
Core EPS growth target (CER)
High single-digit
Dividend outlook Continue attractive dividend policy
Operational Excellencesavings 2012+ : CHF 2.4 bn*
16,27214,836
1,742
16,59114,776
2,202
15,14913,406
2,178
Roche Group Pharma Division Diagnostics Division
33.2%34.9% 35.6%
38.0%39.9% 40.9%
17.3%21.1% 22.4%
CHF m
% of sales
+1.8 %p1
(+0.7 %p)
+1.6 %p1
(+1.3 %p)
+2.1 %p1
(+1.0 %p)
+14 %1
(-1 %)
+5 %1
(-9 %)
+6 %1
(-9 %)
2010 20112009
Group core operating profit and margin Strong margin increase over years
311 CER = Constant Exchange Rates
Roche: Staying focused on Prescription and Diagnostics
32= Active Business Unit = Recent Transaction (post 2006)
= Recent Transaction New Business Area (post 2006)
Rx1 OTC Vaccines Animal Health Generics Bio-
similars Dx Others
Novartis 60% Ophthalmology
Merck & Co 90%
Pfizer 87%
GSK 82% Generics/EMs
Sanofi Aventis 79% Generics/EMs
Bayer 31% Crop/Material Science
Abbott 57% Medical devices
J&J 36% Medical devices
Eli Lilly 94% Branded Gx Intention
AstraZeneca 100% Branded Gx Intention
Roche 78%
Amgen 100%
BMS 100%
Div
ersi
fied
Focu
sed
1 As of 2010 salesSource: FCMG; Company Annual Reports
Roche: Focus on selected business/disease areasAim to play in the lead
33
Roche 1 1
Novartis
Abbott
Sanofi
Pfizer
Merck
JNJ
AstraZeneca
Amgen
1
2
1
1*
1 1
4
2
4
5
6
8
10
7
5
2
3
1 4
5
6
8
9
4 2
8
Sources: IMS MIDAS in PADDS; For Diagnostic: Industry Analyst Report; *Lucentis sold by Roche in US, by Novartis in RoW
2*
3
7
3
6