Roche: Committed to innovation and profitable growth

Nina Goworek, Investor Relations Officer 10 November 2011

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; and 11 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

More than 115 years of Roche Historical timeline

0

10,000

20,000

30,000

40,000

50,000

1896 1934 1970 1990 2000 2007 2010

Founding International expansion

Fragrances & Flavours

Diagnostics

Genentech

Chugai

Disetronic

Diversification

Strategic Transition - focus on Pharmaceuticals & Diagnostics

Sales in 2010: 47’473 million CHF

Personalised Healthcare

Limited Company

Ventana

Boehringer Mannheim

Spin off Fragrances & Flavours Sale OTC Sale Vitamins & Fine Chemicals

#1 in in-vitro

diagnostics

#1 in biotech

One Company

Today

Pharma Diagnostics

Roche Group Structure

Chugai Genentech Roche Diabetes

Care

Roche Applied Science

Roche Professional Diagnostics

Roche Molecular

Diagnostics

Roche Tissue

Diagnostics

Roche Pharma

5

Pharmaceuticals

Diagnostics

Personalized Healthcare

Financials

Pharma: Strong position in a large market

% Pharma Rx market share (2010)

8%

7%

6%

5% 5% 5%

Source: EvaluatePharma Rx + OTC estimate Other represents Australia and Canada

Source: EvaluatePharma

6

Pharma growth rates have declined in last decade

From double digit to single digit

Source: EvaluatePharma

•  Bolus of patent expiries •  Price pressures •  Utilization controls

Pharma market growth rate (prescription drugs)

7

8 % Sales Lost calculated by subtracting given year sales (‘10, ’11, ‘12, ‘13) from full year sales from year prior to LOE. Data excludes sales lost impact of products with LOE prior to 2010. Source: Evaluate Pharma

Roche: Limited exposure to patent expiries in the short and medium term

40%

35%

30%

25%

0%

20%

10%

15%

5%

2010 2011 2012 2013

Business impact from biosimilars 2014/15 and beyond?

Roche strategy for post-patent biologics marketplace Actively pursuing multiple strategies

9

Protect high standards Enforce 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

A leading pipeline 12 NMEs in late-stage development

1LIP decision made, phase III start pending; 2approved in US, filed in EU

2007 2008 2009 2010

Number of NMEs

2

4

10 Metabolic

Oncology

Inflammation

ocrelizumab

dalcetrapib

pertuzumab

taspoglutide

Actemra

CNS

ocrelizumab

12

Virology

dalcetrapib

aleglitazar

Glycine reuptake inh

ocrelizumab MS

lebrikizumab1

HCV pol inh1

pertuzumab

Zelboraf2

T-DM1

vismodegib

GA101 (CLL, NHL)

MetMAb

dalcetrapib

aleglitazar

Glycine reuptake inh

ocrelizumab

pertuzumab

BRAF inhibitor

T-DM1

Hedgehog inh

GA101 (CLL)

taspoglutide

Expected filing timelines

2014 2014 2013 2015 2013 2015 2014

Approved in US, filed in EU Filed in US

2012 2013 Q4 2011

11

HER2 franchise Building on the strength of Herceptin

T-DM1 •  Retains Herceptin’s biologic activity

•  Targeted intracellular delivery of a potent cell-killing agent, DM1

Pertuzumab •  Disrupts HER2:HER3 receptor dimers and

downstream signaling

•  In combination with Herceptin: potential to create new standard of care for women with HER2-positive metastatic BC

T-DM1 vs. Herceptin + docetaxel in breast cancer Ph II: significant improvement in PFS

12

Pro

porti

on p

rogr

essio

n-fre

e

1 . 0

0 . 8

0 . 6

0 . 4

0 . 2

0 . 0

Trastuzumab +docetaxel (n=70)

T-DM1 (n=67)

Median PFS, mos

Hazard ratio

Log-rank P value

T+D T-DM1

9.2 14.2

0.594 0.0353

0 2 16 18 20 Time (months)

4 6 8 10 12 14

Hurvitz SA, et al. Abstract 5.001. ESMO 2011; Hazard ratio and log-rank P value were from stratified analysis

PFS, 1st line HER2+ breast cancer

Trastuzumab + docetaxel (n=66)

T-DM1 (n=69)

Median duration of treatment, months

T-DM1 – 10.0 Trastuzumab 8.1 – Docetaxel 5.5 –

Example

Median OS (month)

Dose escalation 25.2

Extension 13.8

WT or sub-therapeutic. 4.18

Extension cohort in phase I estimated survival: 1 year = 50%, 2 years = 38%

— V600E dose escalation (n=16) — Extension, 960 mg twice daily (n=32) — WT or sub-therapeutic exposure (n=33)

1 year 2 years

0 3 6 9 12 15 18 21 24 27 30 33 36 0

10

20

30

40

50

60

70

80

90

100

Time since first dose (months)

Ove

rall

surv

ival (

%)

Vemurafenib phase I overall survival Updated KM estimates (Aug. 2011)

McArthur, ECCO/ESMO 2011; Flaherty et al, NEJM 2011 13

Example

MEK inhibitor (GDC-0973) in combination with Zelboraf

MEK inh. (GDC-0973) in combination with BRAF inh.

Before initiation of Zelboraf

15 weeks on Zelboraf

after relapse

14 Nature 468,902–903; 16 December 2010

Example

Week 16: no BCC on biopsy

Vismodegib in metastatic and locally advanced Basal Cell Carcinoma Phase II data at EADO and ESMO

Week 20 Baseline Week 8

15 A. Sekulic et al., EADO 2011 In collaboration with Curis

15

Filed in Q3 2011 in US

Example

16

Ocrelizumab in RMS Looking for the next step in MS therapy

Relative reduction in Annualized Relapse Rate vs. placebo in a range of phase 2/3 trials

NOTES: •  Pattern: Solid bars represent Phase III studies; pattern = Phase II •  Trial durations vary from 6 mos. to 3 yrs; studies included different patient populations, different in/exclusion criteria, different ARR definitions and data were collected over a time span of more than 20 years

0

10

20

30

40

50

60

70

80

90

ocrelizumab natalizumab rituximab fingolimod BG-12 interferon ß-1a sc

interferon ß-1b

glatiramer acetate

%

Example

Portfolio outlook An update on key compounds

17

2011 2016 2013 2014 2015 2012

Ale

glita

zar

Lebr

ikiz

umab

Met

MA

b

Ocr

eliz

umab

T-D

M1

Pert

uzum

ab

Vem

uraf

enib

Vism

odeg

ib

Mer

icita

bine

Launch Year

GA

-101

Gly

t-1

Dal

cetr

apib

pRED gRED

Larger

Smaller

Market potential

Status as of September 30, 2011

NME Additional Indication

Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology Others

RG-No Roche Genentech managed CHU Chugai managed

CIF/MEK inh solid tumors RG7167

Raf & MEK dual inh solid tumors RG7304

MDM2 ant (2) solid & hem tumors RG7112

PI3 kinase inh solid tumors RG7321

BRaf inh(2) BRAF mut. melanoma RG7256

anti-PLGF MAb solid tumors RG7334

anti-glypican-3 MAb liver cancer RG7686

tumor immunotherapy oncology RG7446

MEK inh solid tumors RG7420

PI3 K/mTOR inh solid & hem tumors RG7422 AKT inhibitor solid tumors RG7440

MEK inh solid tumors RG7421

anti-D22 ADC hem. malignancies RG7593

anti-Her3/EGFR m. epithelial tumors RG7597

anti-angiogenic solid tumors RG7594

IAP ant (2) solid tum & lymphoma RG7459

anti-FGFR3 MAb oncology RG7444

PI3K inh oncology RG7604

- ADC prostate ca. RG7450

- ADC hematologic tumors RG7596

- ADC ovarian ca. RG7458

- solid tumors or NHL RG7603

anti-CD44-MAb solid tumors RG7356

ALK inhibitor NSCLC CHU - solid tumors CHU

Bcl-2 inh CLL RG7601 - ADC oncology RG7599

Chk-1 inh tumors or lymphoma RG7602

Tweak MAb oncology RG7212

- ADC multiple myeloma RG7598

WT-1 vaccine oncology CHU

mGluR2 antag (2) depression RG1578

BACE inh Alzheimer’s RG7129

ABCA1 inducer dyslipidemia RG7273

GABRA5 cogn. disorders RG1662

CRTH2 antag asthma RG7185

nucleoside pol inh HCV RG7432 Cat S antag CV risk in CKD RG7236

GIP/GLP-1 dual ago type 2 diabetes RG7685

anti-IL-17 MAb RA RG4934

V1 receptor antag (2) autism RG7314

- metabolic RG7652

Anti-IL 6 MAb RA CHU

triple reuptake inh depression RG7166

18

Roche development pipeline

vismodegib operable BCC RG3616 MetMAb mNSCLC RG3638

pertuzumab HER2+ EBC RG1273 pertuzumab HER2+ mBC 2nd line RG1273 T-DM1 HER2+ EBC RG3502

Zelboraf papillary thyroid cancer RG7204

mericitabine HCV RG7128

lebrikizumab severe asthma RG3637

MetMAb mBC RG3638 MetMAb mCRC 1L RG3638

anti-oxLDL MAb sec prev CV events RG7418

navitoclax (ABT-263) sol & hem tum RG7433

rontalizumab SLE RG7415

danoprevir HCV RG7227

mGluR5 antag (2) TRD RG7090

anti-LT alpha MAb RA RG7416

gantenerumab Alzheimer‘s RG1450

P selectin MAb ACS/CVD RG1512

anti-M1 prime MAb asthma RG7449

11 beta HSD inh metabolic diseases RG4929

rhu Mab Beta7 ulcerative colitis RG7413

anti-factor D Fab geogr. atrophy RG7417

anti-EGFL7 MAb solid tumors RG7414

anti-Abeta MAb Alzheimer‘s RG7412

MAO-B inh AD RG1577

EGFR Mab solid tumors RG7160

Phase I Phase II

18

MabThera ANCA assoc vascul RG105

Xolair chronic idiopathic urticaria RG3648

Rituxan NHL fast infusion RG105

Avastin HER2+ BC adj RG435 Avastin BC combo Herceptin 1st line RG435 Avastin NSCLC adj RG435

GRI schizophrenia negative sympt. RG1678

Avastin HER2-neg. BC adj RG435

Avastin high risk carcinoid RG435 Avastin glioblastoma 1st line RG435

Avastin triple-neg. BC adj RG435

aleglitazar CV risk reduction in T2D RG1439 dalcetrapib atherosc. CV risk red. RG1658

Lucentis AMD high dose RG3645

pertuzumab HER2+ mBC 1st line RG1273

Herceptin HER2+ BC s.c. form. RG597 Herceptin HER2+ adj BC (2yrs) RG597

GA101 iNHL relapsed RG7159

Tarceva NSCLC adj RG1415

Actemra early RA RG1569

T-DM1 HER2+ mBC 1st l. RG3502 GA101 CLL RG7159

Actemra RA DMARD IR H2H RG1569

Avastin mCRC TML RG435

T-DM1 HER2+ adv. mBC RG3502

Actemra sc formulation RA RG1569

Tarceva NSCLC EGFR mut 1st line RG1415

MabThera NHL s.c. formulation RG105

ocrelizumab RMS RG1594

Avastin mBC 2nd line RG435

GRI schizophrenia subopt control RG1678

GA101 DLBCL RG7159 GA101 iNHL front-line RG7159

tofogliflozin (SGLT2) type 2 diabetes CHU

ocrelizumab PPMS RG1594

T-DM1 HER2+ mBC 3rd l. RG3502

Phase III

19

Pharmaceuticals

Diagnostics

Personalized Healthcare

Financials

2010 2015E

20

•  Labs remain willing to invest to address costs and improve efficiency

•  Payers support solutions that deliver health economic and medical value

•  New drug approvals increasingly linked to Companion Diagnostics

•  Emerging markets adopting “western” standards of care

Market Overview: In vitro Diagnostics Large & growing market, increasing in importance

CAGR

44

57

Molecular

Total

Professional

Tissue

3

5

2

3

USD bn

36 29

5%

11% 5%

9%

Diabetes Monitoring

10 9 3%

Market trends

Source: Independent IVD consulting firm, Roche Analysis, Company reports Excludes Life Sciences & insulin pumps

World-wide IVD Sales by Segment

21

Market Overview: Market share Roche is the clear IVD market leader

20%

12% 11%

9%

7%

3%

Roche Abbott Siemens J&J Beckman bioMérieux

•  Total solution offering

•  Breadth of technologies

•  IT and workflow connectivity

•  Completeness of menu

•  Strong commercial presence

•  Operates in >130 countries

Source: Independent IVD consulting firm, Roche Analysis, Company reports Excludes Life Sciences & insulin pumps

Roche's strengths

22

Performance: Diagnostics Division HY 2011 Leading in sales growth and margin

2010 2011 % change CHF m CHF m CHF CER

Professional Diagnostics 2,449 2,347 -4 +9

Diabetes Care 1,489 1,329 -11 +1

Molecular Diagnostics 604 544 -10 +2

Applied Science 449 377 -16 -4

Tissue Diagnostics 259 259 0 +16

Diagnostics Division 5,250 4,856 -8 +5

Sales 4,856 100.0

Royalties & other op inc 50 1.0

Cost of sales -2,052 -42.3

M & D -1,174 -24.1

R & D -431 -8.9

G & A -186 -3.8

Core operating profit 1,063 21.9

2011 % change CHF m % Sales (at CER)

+5

-41

+2

+7

+11

+2

+5

Sales Operating profit

CER=Constant Exchange Rates, (average full year 2010)

23

Pharmaceuticals

Diagnostics

Personalized Healthcare

Financials

in R&D

Diagnostics Pharma

24

Competitive advantage of having Pharma and Diagnostics in the Group

in Commercial

Develop superior Personalized Healthcare solutions, faster and cheaper Drive faster implementation in the market

Personalised Healthcare – a key enabler Fitting the treatment to the patients

Effectiveness of treatment can be improved . . . •  20-75% of patients do not receive effective treatment1

•  >100,000 deaths/yr from adverse drug reactions in US2

. . . by tailoring treatments to selected patient groups defined by biomarkers 1 Spears et al., Trends Mol Med, 2001 2 Lazarou et al., JAMA, 1998

Roche Pharma: a leading pipeline 12 NMEs in late-stage development

26 2007 2008 2009

New molecular entities (NMEs)

2

4

10

Metabolic

Oncology

Inflammation

ocrelizumab

dalcetrapib

pertuzumab

taspoglutide

Actemra

CNS

ocrelizumab

Virology

dalcetrapib

aleglitazar

Glycine reuptake inh

ocrelizumab

pertuzumab

BRAF inhibitor

T-DM1

Hedgehog inh

GA101 (CLL)

taspoglutide

2010

12

dalcetrapib

aleglitazar

Glycine reuptake inh

ocrelizumab MS

lebrikizumab1

HCV pol inh1

pertuzumab

Zelboraf2

T-DM1

vismodegib

GA101 (CLL, NHL)

MetMAb

√

√ √

√ √

√

PHC approach

1LIP decision made, phase III start pending; 2approved in US, filed in EU

A big step forward for our PHC strategy Zelboraf is just the start…

T-DM1 Metastatic breast cancer (HER-2 expression level)

Pertuzumab  Metastatic breast cancer

(HER-2/3 expression level)

Mericitabine Hepatitis C

(HCV viral load, genotype) 

MetMAb Non-small cell lung cancer

(MET status)

Lebrikizumab1 Asthma

(periostin level)

Zelboraf Metastatic melanoma

(BRAF V600E mutation)

1 LIP decision made, phase III start pending

PHC: Roche internal collaborations Significant increase due to focused PHC strategy

2005 2010 2006 2007 2008 2009

= Companion Dx Projects = R&D Collaborations

Genentech Privatization

Ventana Acquisition

10

28

169

29

Personalised Healthcare- benefit for all stake holders, including the industry

Today Future

Reduced Patient pool

Price increase /stability

Faster penetration

Lower development

costs

Increased market share

Time to market

Benefit from patient stratification

30

Pharmaceuticals

Diagnostics

Personalized Healthcare

Financials

Sales 24,636 21,671 -12 0 Core operating profit 9,159 8,251 -10 +5 as % of sales 37.2 38.1

Core net income 6,062 5,821 -4 +11 as % of sales 24.6 26.9 Attributable to Roche shareholders 5,965 5,697 -4

Core EPS (CHF) 6.95 6.68 -4 +10 IFRS net income 5,565 5,259 -5 +10

as % of sales 22.6 24.3

HY 2011: Group performance Core EPS growth +10%1

31

CHF m %Change 2010 2011 CHF CER

1 at Constant Exchange Rates, CER (average full year 2010)

32

Pharmaceuticals Division 28.4 24.4 -14 -1 +1

Diagnostics Division 7.7 7.1 -8 +6

Roche Group 35.3 31.5 -13 0 +2

Excluding CHF bn 2010 2011 CHF CER Tamiflu1

% change

YTD Sept 2011: Group sales Supporting full-year guidance, strong currency impact

1 at Constant Exchange Rates, CER (average full year 2010)

HY 2011: Group operating performance Positive effects of Operational Excellence

33 1 Cost of goods sold & period cost

-10% in CHF

G&A excl. excise tax

COGS/PC1: +1%

Higher milestone income and product disposal income

Lower royalty (e.g. Tamiflu) and manufacturing costs

Primary care sales force reduction & cost management

Project prioritisation and OpEx savings (Pharma -2%)

Increase due to excise tax in the US

Efficiency improvements

Major drivers Sales

Royalties & other op. inc Cost of sales M & D R & D G & A

Core operating profit

2011 vs. 2010 local growth

Underlying sales growth of Herceptin, Lucentis, MabThera/Rituxan and Actemra

HY 2011: Group core operating profit and margin Strong margin increase over years

34

CHF m % of sales

+1.8 % p1 (+0.9 % p)

-0.2 %p1 (-0.4 %p)

+2.7 %p1 (+1.7 %p)

+5 %1 (-9 %)

+5 %1 (-10 %)

+5 %1 (-10 %)

2010 2011 2009

1 at Constant Exchange Rates

P&L structure reflecting innovation based strategy Peer group core operating profit margin 2010

35

R&D % sales Core operating profit margin % sales

M&D+G&A % sales

FY 2010 figures; restated to a core basis based on publicly available information

1. Pfizer: Non-core items in CoS 2. Eli Lilly: 8%p. lower CoS ratio vs. Roche. Not feasible to judge

if definition of Lilly’s CoS same as Roche’s 3. JNJ: No adjustments feasible as no details are disclosed.

Committed to growing operating free cash generation

Ø 28%

Pfizer 16% Astellas 19%

Becton D. 21% Merck 23%

Novartis 28%

BMS 29% J&J 29%

Takeda 30%

Roche 30% Abbott 32%

Lilly 34% AZ 35%

Sanofi 36% Amgen 36%

Biogen 52% Gilead 52%

Operating free cash flow 2010 (% of sales)

GSK Bayer

(27% excl. Biogen and Gilead) 36

Group operating free cash flow (CHF bn) and margin

37

2.50

3.40

4.60

6.006.60

5.00

2.00

55.0%

51.6%

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2004 2005 2006 2007 2008 2009 20100%5%10%15%20%25%30%35%40%45%50%55%

Attractive dividend payout ratio

CHF Average yearly dividend growth

(2004-2010): 22%

1 compound annual growth rate

Payout ratio

Pay-out ratio calculated as dividend per share divided by core earnings per share (diluted)

Pay-out ratio calculated as dividend per share divided by earnings (before exceptional items) per share (diluted)

38

2010: 24th consecutive annual increase in the dividend

27% increase in the ADR dividend!

Dividend per share Dividend per American Depositary Receipt1

1Currency rate as determined by the depositary bank during the dividend payment and tax reclaim process

+10%

Increasing shareholder value

Increasing cash generation •  HY 2011: Operating free cash flow +27%1 (+7% CHF)

39

P&L: increasing profitability •  Operating profit margin increase (37.2% to 38.1% HY 2011)

Committed to an attractive dividend policy •  Grow in-line with Core EPS; maintain at least last year’s dividend in CHF

Delivering on productivity improvements •  Headcount: 3,000 released from work, further 800 notified since start of

Operational Excellence •  Sites: closing/divesting of Boulder, Burgdorf, Kulmbach, Graz and Palo Alto

done or ongoing

1 at Constant Exchange Rates

40

Increased outlook for 2011 Good first half due to strong business performance

Barring unforeseen events; CER=constant exchange rates; * vs. 2010: CHF 0.8 bn

Sales growth (at CER) Group & Pharma (excl. Tamiflu): low single-digit Diagnostics: significantly above market

Core EPS growth target (at CER)

Increased to around 10%

Genentech synergies 2011+ : CHF 1.0 bn*

Dividend outlook Grow in-line with Core EPS; maintain at least last year’s dividend in CHF

Operational Excellence savings

2011 : CHF 1.8 bn 2012+ : CHF 2.4 bn

Roche in brief Innovation & productivity

•  Focused innovation strategy –  Personalized Healthcare through Pharmaceuticals & Diagnostics –  Medically-differentiated products & services

•  Leading businesses –  Biotech-based leadership in Oncology, Virology; emerging Immunology,

Cardio-metabolic and Neuroscience franchises. Limited patent risk –  World’s #1 in-vitro Diagnostics company

•  Strong financials –  Increasing profitability through growth & productivity with constant focus on

cash flow –  Attractive dividend

We Innovate Healthcare