This presentation contains certain forwar d-looking ...

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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.

Additional information and where to find it

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Roche: Committed to innovation and profitable growth

2011 resultsFebruary 1, 2012

5

GroupSeverin SchwanChief Executive Officer

6

2011 performance

Illumina proposed acquisition

Growth

Roche in 2011: Targets fully achieved

7

Targets for 2011 FY 2011

Pharma Low single-digit 1,2 +1%

Diagnostics Above market1 +6%

Group Low single-digit 1,2 +2%

Operational excellence CHF 1.8 bn ~CHF 1.8 bn

Core EPS Around 10%1 +11%

Dividend min CHF 6.60 CHF 6.80 +3%

1 Growth rates, at constant exchange rates; 2 Excluding Tamiflu 2011 dividend as proposed by the Board of Directors

Priorities 2011

8

Improve Efficiency

• Implement ‘Operational Excellence’ as announced

• Capture remaining synergies from Genentech integration

Drive Innovation and Growth

• Progress late-stage pipeline• Prepare launches for potentially

three NMEs (BRAF inhibitor, pertuzumab, hedgehog inhibitor)

• Launch key diagnostic tests (HPV, BRAF, KRAS, EGFR)

2011: Bring personalised healthcare to patients

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 rates9

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

10* corresponds to CHF 1,836 m at exchange rates at the time of Operational Excellence announcement;1 including Genentech integration synergies

CHF m

Continuous increase in dividends and pay-out ratio

11

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

Priorities 2011

12

Improve Efficiency

• Implement ‘Operational Excellence’ as announced

• Capture remaining synergies from Genentech integration


• Progress late-stage pipeline• Prepare launches for potentially

three NMEs (BRAF inhibitor, pertuzumab, hedgehog inhibitor)

• Launch key diagnostic tests (HPV, BRAF, KRAS, EGFR)

2011: Bring personalised healthcare to patients

Actemra scphIII Japan

TarcevaEURTAC

2011: Science translates into clinical success17 positive trials

13

2 0 1 1

MetMAbNSCLC

Avastin+HerceptinAVEREL

ZelborafBRIM 3

dalcetrapibdal-PLAQUEdal-VESSEL

lebrikizumabMILLY

LucentisRIDE

T-DM1phII

Avastin+pemetrexed

AVAPERL

pertuzumabCLEOPATRA

Avastin OCOCEANS

LucentisRISE

ErivedgeERIVANCE

LucentisHARBOR

Positive trials

Herceptin scHANNAH

ActemraBUILDER I/II

GA101GAUSS

ActemraACT-Ray

2011: Three New Molecular Entities filedExpanding into selected therapeutic franchises

14

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

dalc

etra

pib

Larger(> 1 bn)

Smaller(up to ~1 bn)

Non risk-adjusted

Metabolism

Oncology

Immunology

Neuroscience

Virology

dano

prev

ir

2016

lebr

ikiz

umab

Personalised Healthcare is a reality todaySignificant progress in 2011

15* Approved in the US, positive CHMP opinion in EU

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

In Ph III Ph III Ph III decision in 2012

16

2011 performance


Growth

Access to leading IHC/ISH* technology

Access to leading ECL** technology

Access to leading PCR*** technology

Access to leading Sequencing technology

*Immunohistochemistry / In situ hybridisation ** Electrochemiluminescence ***Polymerase Chain Reaction

Technologies

Strategic rationaleTransforming acquisitions have strengthened the Diagnostics business

Market position

1991 2003 2007 2012

SequencingIHC/ISH*Immunoassays Clinical ChemistryPCR***

# 1 Sequencing

# 1 TissueTesting

# 1Serum Work Area

# 1 Molecular

Testing

17

18

2011 performance


Growth

2012 sales outlook: Improved base line and new product launches

19

2011 sales

Declining•CellCept•Boniva/Bonviva•Lucentis•Neorecormon/Epogin

•Xenical•Tamiflu

Growing•Diagnostics

•Herceptin•MabThera/Rituxan•Pegasys•Avastin•Actemra•Tarceva

New launches•Zelboraf•Erivedge•pertuzumab

2012sales

Priorities 2012

20

Improve Efficiency

• Achieve ongoing annual savings from ‘Operational Excellence’ of CHF 2.4 bn(vs. CHF 1.8 bn in 2011)

• Continued focus on productivityimprovements and net working capital


• Progress late-stage pipeline• Launch three NMEs

(Zelboraf, Erivedge, pertuzumab)• Launch 16 key diagnostic products

2012: Continuously adapt to a changing environment

Outlook for 2012

21Barring 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*

22

Pharmaceuticals DivisionPascal SoriotCOO Roche Pharmaceuticals

2011: Pharma sales in-line with guidance

23

2010 2011 ExcludingCHF m CHF m CHF CER Tamiflu1

change in %

Pharmaceuticals Division 37,058 32,794 -12 0 +1

United States 14,071 12,223 -13 +2 +3Western Europe 9,467 8,221 -13 -3 -4Japan 4,319 3,817 -12 -6 -3International 9,201 8,533 -7 +3 +7

1 CER = Constant Exchange Rates

2011: Pharma quarterly growth

24Excluding Tamiflu, absolute amounts in CHF m at Constant Exchange Rates (CER) average 2010; all growth rates at CER

-200

-100

0

100

200

300

400

500

Q1 Q2 Q3 Q4

US

International

Japan

WE

+1% +1%0%

+3%

CHF

m

2011: Pharma sales driversOncology, Lucentis and Actemra main growth drivers

2525Absolute amounts in CHF m at Constant Exchange Rates (CER) average 2010; all growth rates at CER

-800 -600 -400 -200 0 200 400 600

Avastin

NeoRecormon/Epogin

Mircera

Boniva/Bonviva

CellCept

Xeloda

Actemra/RoActemra

Lucentis

MabThera/Rituxan

Herceptin

InternationalUSJapanWestern Europe

+9%

+8%

+23%

+73%

-14%

-22%

-23%

-7%

Tamiflu: -467, -53%

+50%

+8%

2011: Pharma Division Profitability improvement in a challenging environment

26

Sales 32,794 100.0

Royalties & other op inc 1,453 4.4Cost of sales -7,053 -21.5M & D -5,564 -16.9R & D -7,173 -21.9G & A -1,051 -3.2

Core operating profit 13,406 40.9

2011 vs. 2010CER growth

2011CHF m % sales

CER = Constant Exchange Rates

5%

-6%

10%

-2%

-6%

-2%

9%

0%

G&A excl. excise tax

2011: Solid growth of the oncology franchise

27

Major brandsCHF bn

CER growth

CER = Constant Exchange Rates Oncology 2011 sales: 19.2 bn

Growth in US, Emerging markets and Japan

Strong growth in key markets: US, China and Brazil. US growth partially driven by shortage of IV 5FU

US & EU: Impact from mBC indication and austerity measures; strong growth in Emerging markets

Continued uptake in 1L maintenance in NHL approved in Oct ‘10 in EU and Jan ‘11 in US; further uptake in CLL

0 1 2 3 4 5 6 7

Tarceva

Xeloda

Herceptin

Avastin

MabThera/Rituxan

+9%

+8%

-7%

+7%

+8%

Expanded access in Emerging markets, increased HER2 testing and further uptake in HER2-positive gastric cancer

LucentisCompetitive environment in 2012

281 CER = Constant Exchange Rates; AMD = wet age-related macular degeneration; DME = diabetic macular edema

CHF m

US sales

• AMD: Lucentis share stable following CATT year 1 data release

• Market share in RVO up: 27% from 20% in Q4 ‘10

• Diabetic Macular Edema (DME): US filed, PDUFA August 2012

0

400

800

1200

1600

2008 2009 2010 2011

+23%1

Actemra/RoActemra in Rheumatoid Arthritis Growing in all regions

29

0

100

200

300

400

500

600

700

2008 2009 2010 2011

CHF mDrivers for future growth

• DMARD IR (first-line biologic) filed in US in December 2011

• H2H trial vs Humira (ADACTA): readout H1 2012

• Subcutaneous formulation: filing planned 2012 EU and US

Actemra/RoActemra sales

+73%1


2011/2012: Three potential New Molecular Entities launches

30

Zelboraf (BRAF inh.)

Metastatic melanoma

Approved in US Q3 2011Recommended for approval in EU

Erivedge (Hedgehog inh.)

Advanced basal cell carcinoma

Approved in US Jan 2012Filed in EU Q4 2011

pertuzumab

HER2+ 1L metastatic breast cancerFiled in US and EU Dec 2011

Establishing Zelboraf as new standard of care

31

78% 76%

9% 14%

13% 10%

1st line treatment(n=121)

2nd line treatment(n=74)

% o

f BRA

F v6

00 m

utat

ion-

posi

tive

met

asta

tic m

elan

oma

patie

nts

In BRAF V600 patients, Zelboraf is the dominant therapy(~60% of patients currently tested for BRAF status)

Other (Temodar, IL2, DTIC, Platinum, Taxane, Avastin...)

Yervoy

Zelboraf

Source: Quarterly chart audit: Charts of mM patients starting 1L or 2L therapy between Aug 15 and Nov 28; Confidence intervals for Zelboraf market share: +/-10%

Week 16no BCC

on biopsy

Erivedge in metastatic and locally advanced Basal Cell Carcinoma

32Week 20

Baseline

Week 8

32

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

Approved in US Jan 2012Filed in EU Q4 2011

BCC Prevalence AdvancedBCC Prevalence

Europe andAustralia

US

1,900K

14K

1,850K

8K

Epidemiology*

*Basal cell carcinoma is not tracked in most cancer registries, including SEER. Prevalence is difficult to estimate and there is high uncertainty in our projections. Shown are estimates from incidence rates reported in literature and primary market research.

Pertuzumab in HER2+ 1st line mBCCLEOPATRA study

33D, docetaxel; PFS, progression-free survival; T, trastuzumab

0 5 10 15 20 25 30 35 400

10

20

30

40

50

60

70

80

90

100

Time (months)

Pertuzumab+T+D: median 18.5 months

Placebo+T+D: median 12.4 months

HR = 0.6295% CI 0.51‒0.75

p<0.0001

Δ = 6.1 months

Prog

ress

ion-

free

surv

ival

(%)

Filed in US and EU Dec 2011

Continuous sales growth in key emerging markets

34

0

1

2

3

4

2007 2008 2009 2010 2011

+3%+0%

+14%

+13%

CHF bn

Excluding Tamiflu, absolute amounts in CHF m at Constant Exchange Rates (CER) average 2010; all growth rates at CER

Brazil

China

India

Turkey

Mexico

Russia

Korea

Emerging markets: Where to grow?

35

2000 2005 2010

Objective: maintain high share in private segment –expand to public segment

Roche to maintain high share

Out of pocket

Private insurance

Public payers

Growing segment:We are testing various

models to increase access to medicinesSh

are

of fi

nanc

ing

by p

ayer

type

Illustrative for emerging markets

Second brand

Patient Assistance Program

Access to medicines in emerging marketsModels designed for individual market needs

36

Higher priced 1st brand for private market Lower priced 2nd brand for public market

Assist patients to initiate or continue treatment while maintaining list price

e.g. Egypt

e.g. China

Tailored models Designed for individual markets, depending on the local needs

Patient Assistance: Herceptin program in ChinaCreating platform for public reimbursement


0

100

200

300

400

500

600

700

AverageJan-July

Aug Sep Oct Nov Dec

New

pat

ient

sre

crui

ted

2011 China Herceptin sales: +128%1

Start:August 2011

6 cycles (commercial) + max. 8 cycles (donation)

Second brand1: Pegasys in Egypt Significant sales increase

38

CHF m

Sales Performance – Before and after 2nd brand launch

0102030405060708090

100

2002 2003 2004 2005 2006 2007 2008 2009 2010

Pegasys Sales Pegferon Sales

1 First brand (Pegasys) at full price; second brand (Pegferon) at reduced price

Major clinical and regulatory news flow

39

Timeline Compound Indication Milestone

Avastin mCRC Ph III TML

2012

pertuzumab 1st line HER2+ mBC US, EU approval

Erivedge advanced BCC US approval EU approval (2012/13)

Zelboraf metastatic melanoma EU approval

Lucentis DME US approval

T-DM1 2nd line HER2+ mBC Ph III EMILIA

Herceptin subcutaneous early HER2+ BC Ph III HANNAH (data presentation)

Herceptin adjuvant HER2+ BC Ph III HERA 2 years vs. 1 year

MabThera subcutaneous front-line follicular NHL Ph III

Actemra RA DMARD IR Ph III ADACTA H2H vs. Humira

Actemra subcutaneous RA, moderate to severe Ph III SUMMACTA/BREVACTA

Avastin newly diagnosed glioblastoma Ph III AVAglio

2013

dalcetrapib Atherosclerosis CV risk red. Ph III dal-OUTCOMES final analysis;2nd interim analysis in H1 2012

GA101 Front line CLL Ph III vs. chemotherapy

Glycin reuptake inh (GlyT-1) Schizophrenia Ph III (several studies)

Oncology and CV outcome studies are event driven, timelines may change

40

Diagnostics DivisionDaniel O’DayCOO Roche Diagnostics

41

2011 performance


Key launches 2012

2010 2011 CHF in %CHF m CHF m growth CER

2011: Diagnostics Division sales Sustained high growth above the market*

Professional Diagnostics 4,858 4,686 -4% 9%Diabetes Care 2,959 2,675 -10% 2%Molecular Diagnostics 1,189 1,094 -8% 4%Applied Science 868 740 -15% -3%Tissue Diagnostics 541 542 0% 15%

Diagnostics Division 10,415 9,737 -7% 6%

* IVD market growth estimated 4%42


43


2011CHF m % sales

Sales 9,737 100.0

Royalties & other op inc 129 1.3Cost of sales -4,064 -41.7M & D -2,403 -24.7R & D -900 -9.2G & A -321 -3.3

Core operating profit 2,178 22.4

2011: Significant profit and margin increase Driven by strong sales and ongoing cost savings

14%

-12%

12%

8%

1%

-7%

6%


44

Outperformance in spite of a challenging market environment

Sources: 3rd party IVD consultancy, Analyst reports, Roche Analysis; *Q4 2011 market growth is an estimate

Quarterly Market & Roche Growth (%)

20112010

FY 2011: 6%

0

1

2

3

4

5

6

7

8

9

10

MarketRoche

Q3Q2Q1Q4Q3Q2Q1 Q4

Leveraging Key Strengths

• Worldwide IVD market leader

• Strong commercial presence

• Total solution offering *

North America+4%

25% of divisional sales

Latin America+15%


Japan+6%

5% of divisional salesEMEA1

+3%


2011: Diagnostics Division sales Strong growth in all regions

1 Europe, Middle East and Africa;All growth at CER (Constant Exchange Rates)

Asia Pacific+17%


45

Roche is market leader in Asia PacificChina driving growth

Asia Pacific market by competitors

Source: Clearstate research and Roche estimates46

Outgrowing market nearly two-fold

Roche Diagnostics sales in China

0

0.5

1

1.5

2

2.5

3

3.5

2005 2006 2007 2008 2009 2010 2011

CAGR of 36%

CNY

bn

Roche23%

Abbott

Siemens

BeckmanBiomerieux

SysmexJ&J

BDHitachi

Others

47

2011: Growth driven by Professional and Tissue Diagnostics

CHF bn2011 vs. 2010CER growth

0 1 2 3 4 5

Tissue Dia

AppliedScience

MolecularDia

DiabetesCare

ProfessionalDia

EMEANorth AmericaRoW

+9%

+2%

+4%

-3%

+15%

Lower demand for H1N1 testing and slowdown in research funding; Launch of LightCycler Nano for PCR

Launch of HPV test in US; Launch of companion diagnostics oncology tests BRAF (ww) and EGFR & KRAS tests (CE Mark)

Maltose-independent test strip chemistry for Accu-ChekAviva approved in US; Strong growth in emerging markets

Expanding immunoassay menu; cobas c 702 clinical chemistry module launched; Acquisitions enhance product offering

29 new antibody (IHC) assays launched; US launch of HER2 dual ISH test; mtm labs acquisition

EMEA = Europe, Middle East and Africa, APAC = Asia Pacific CER = Constant Exchange Rates

48

FDA clears Accu-Chek Nano SmartView system

1 Not available in the US

• Small blood glucose (bG) monitoring system with sleek design and improved functions

• no coding required to calibrate meter andtest strips

• First launch of next generation Accu-Chekproduct portfolio in the US

• Expanding the success of the Accu-Chek Aviva Nano1 & Accu-Chek Performa Nano1 product line

49

Launch of cobas 4800 BRAF, EGFR* and KRAS* testsEnsuring the right therapy for the right patient

• Fast and reliable biomarker detection1,4

High sensitivity, broad mutation coverage, results < 8 hours

• Very accurate and highly reproducible results by PCR analysis1,3,4

Better sensitivity compared to Sanger sequencing1-4

• Pharma and Diagnostics PHC collaboration Joint launch of Zelboraf & BRAF V600 test

* Not available in the US; 1 S. Lee et al. Virchows Archv 2011, 2 J. Sosman et al. New Eng J Med in press 2012, 3 S. Anderson et al. Arch Path & Lab Med in press 2012, 4 cobas EGFR Mutation Test Package Insert

Acquisitions in 2011Strengthening product offering

Complement cobas HPV test, enhance offering

• exclusive IP on p16 biomarker

• cervical cancer screening, management & diagnosis

PVT mtm LabsVerum Diagnostica*

Improve labs’ testing efficiency

• post and pre-analytics automation for labs

• connectivity to cobasmodular analyzers

Expand coagulation testing portfolio

• platelet function testing

• growing market with high medical need

50

Professional Diagnostics Tissue Diagnostics

* Acquisition was completed on January 3, 2012.

51

2011 performance


Key launches 2012

2010 Business Mix

Illumina proposed acquisition: Company overviewSolid business with strong revenue and margins

Geographic Mix

20%

25%55%

ROW

Europe

U.S.

Segment Mix

6%

7%

35%

22%

30%Sequencing Instruments Service

Arrays Instruments

Arrays Consumables

Sequencing Consumables

10%

80%

0%

10%

Customer Mix

Pharma/Biotech

ClinicalAcademic & Gov’t

Source: Analyst reports, Thomson Financials, Company website * not complete product range

Company Facts• Founded in 1998• Based in San Diego, California• ~2,100 FTEs (year-end 2010)2010 Financials• Revenue ’10: USD 903 m• CAGR ‘06–’10: 49%• Operating Margin: 23%

Product Portfolio*Sequencing Microarrays

BeadXpress

HiScan iScanHiSeq2000

GA IIx

HiScanSQ

MiSeq

52

HiSeq1000

Applied/Industry

Illumina proposed acquisition: Rationale

53

Strengthen portfolio• complement offering in sequencing• broaden menu of technologies for diagnostics customers

Entry into IVD• leverage diagnostics expertise to accelerate transition into

routine clinical use• unique Roche Rx-Dx collaboration for PHC solutions

Unlock commercial potential• leverage each company’s strengths• customer segments and geographic reach

Increase market participation• strengthen presence in fast-growing market

54

2011 performance


Key launches 2012

Key launches 2012

55

Area Product Market BA*

Instruments/Devices

Labs cobas t 611 - Coagulation analyzer BenchMark Special Stains - Tissue stainerVENTANA iScan HT - Digital tissue scanner

EUWWWW

RPDRTDRTD

Point of Care cobas b 101 - Multi lipid and glucose analyzercobas b 123 - Blood gas analyzer

EUUS

RPDRPD

Diabetes Care Accu-Chek Nano SmartView - bG1 monitoring systemAccu-Chek Combo – Insulin pump & bG meter combinedAccu-Chek Mobile – Next generation strip free bG meterSOLO Micropump – Insulin pump and bG meter combined

USUSEUEU

RDCRDCRDCRDC

Tests/Assays

Oncology HE4 - Ovarian cancerER – Breast cancerCINtec p16 Histology- Cervical cancerGS GType Sequencing Primer Sets- Leukemia

USUSEU, USWW

RPDRTDRTDRAS

Infectious Diseases

CMV – Cytomegalovirus infectionsCT/NG - Chlamydia and gonorrhoea infections

USUS

RMDRMD

Metabolism Vitamin D total - Vitamin D2 & D3 US RPD

* Business Areas. RPD: Roche Professional Diagnostics; RDC: Roche Diabetes Care; RMD: Roche Molecular Diagnostics ; RAS: Roche Applied Science; RTD: Roche Tissue Diagnostics; 1 bG: blood glucose

Achieve sales growth above the market

56

GroupAlan HippeChief Financial Officer

57

2011 financial performance

Improving financial strength

Outlook

2011: Highlights

58

Core EPS +11%1

• Operating profit, financial result & taxes driving profit growth

Operational Excellence / Productivity improvements• CHF 1.8 bn savings realized in 2011; further implementation on track

Strong operating free cash flow• 14% CER growth (-3% in CHF)• Early buy-backs of CHF 3.2 bn notes


Dividend• Increased for the 25th consecutive year and will result in an increased pay-out

ratio of 55.3%

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

59

CHF m % Change2010 2011 CHF CER


6%

-3%6%

-1%

-2%

-1%7%

1%

2011: Group operating performance Positive effects of Operational Excellence

60

-9% in CHF

G&A excl. excise tax

Higher royalty, milestone and product disposal incomeLower royalty (Herceptin, Tamiflu and Boniva) and manufacturing costsPrimary care sales force reduction & cost management

Project prioritisation and OpEx savings

Increase due to excise tax in the US

Efficiency improvements

Major driversSales

Royalties & other op. incCost of salesM & DR & DG & A

Core operating profit


Growth of Diagnostics Division, Herceptin, MabThera/Rituxan, Lucentis, and Actemra


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

61* corresponds to CHF 1,836 m at exchange rates at the time of Operational Excellence announcement;1 including Genentech integration synergies

CHF m

Headcount development Net reduction ~2,000; growth in Diagnostics & China

62

4,800

Left3,850

OpEx target2012+

OpEx status31.12.2011

82,104

80,129

30/09/2010 31/12/2011

Transfers to 3rd parties

OpEx Left-3,850

Others, net -15

+770

Dia +1,489

Headcount developmentOpEx reduction1

1 net of transfers to 3rd parties

Reference base for OpEx

Notified 690

4,540

-369

Pharma China

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


High operating free cash flow and margin

64

12.4

15.714.1

13.7

27.1%

32.1%29.8%

32.3%

2008 2009 2010 2011

Group operating free cash flow (CHF bn) and margin

+14%1

CHF bn

% of sales


Cash flow development 2010 – 2011Higher free cash flows

65

14'149

4'699

5'265

OFCF Dividend Tax andtreasury

FCF

16'102

5'670

5'762

OFCF Dividend Tax andtreasury

FCF

OFCF = Operating free cash flow; FCF = Free cash flow

2010 2011

+14%(CHF: -3% to 13,733)

All at constant exchange rates average full year 2010

CHF m

66

Core net financial resultContributor to earnings growth

-50

-40

-30

-20

-10

0

10

20

30

2008 2009 2010 2011

Net cash (debt) (CHF bn)Financial income (CHF bn)

Financing costs (CHF bn)

Liquid funds

Debt Net cash (debt)

Core financial income and financing costs excl. net pension management

-0.24

-1.80

-2.17

-1.66

0.44

0.29

-0.01

0.15

2008 2009 2010 2011

Increasing dividend pay-out ratio

67

5.00

6.006.60 6.80

44.8%48.6%

51.6%55.3%

2008 2009 2010 2011

Dividend(CHF)

Dividendpay-out ratio

2011 as proposed by the Board of Directors

68



Outlook

0%

25%

50%

75%

100%

2009-2010

2011 2012 2013 2014 2015 2016 2017 2019 2021 2039

42% of original Genentech debt paid back already 9.4% repaid in 2011

69

58%

2011 early buy-backs:

• 2014 USD 1 bn (early redemption option)• 2013 EUR 968 m (tender offer)• 2012 CHF 302 m (tender offer)• 2015 GBP 350 m (tender offer)• 2023 GBP 50 m (tender offer)

9.4%

At fx rates of date of issuance 2009

Roche: Aiming for a sustainable net debt leverage of 0-15%

70

302520151050

RocheGSK

Abbott

Amgen

Gilead Bayer

Pfizer

LillyNovartis

Becton D.

BMS

MerckAZ

J&J

Biogen

Sanofi

Takeda

35

S&P rating

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

Leverage1 (%)

-15 -10 -5-35 -30 -25 -20

AAAAA+AAAA-A+AA-BBB+BBBBBB-BB+

1 Net Debt / Total Assets (%)Source: Thompson Datastream; Bloomberg (May 23; 2011); BCG analysis

2010:31%

2011: 25%

31 December 2011: Balance sheet Bond repayments of CHF 4 bn; equity ratio at 24%

33.4 33.3

16.7 16.9

10.9 11.3

11.7 14.5

34.4 30.9

15.0 16.2

Non-currentassets

Assets Equity & liabilities

Non-currentliabilities

Equity(Net assets)

Other currentassets

Cash andmarketablesecurities

Currentliabilities

CHF bn

61.6 61.661.0

19% 24%

55%

27%

18%

54%

28%

18%

56% 50%

25% 26%

61.0

31/12/10 31/12/11 31/12/10 31/12/11

+2%

+3%

0%

+9%

-10%

+27%

+1% +1%

% change in CER vs 31/12/10

% change in CER vs 31/12/10

Net debt/total assets:

25%

71CER = Constant Exchange Rates

Tighter management of receivables due to increasingly challenging environment

72

0

2'000

4'000

6'000

8'000

10'000

12'000

2010 2011 2010 2011

DiagnosticsPharma

Group receivables

Receivables in Southern European

countries*

1 at CER (Constant Exchange Rates) * Spain, Italy, Portugal and Greece

+6%1

-4%1

Implementing action plans in critical markets

• New commercial policies introduced

• Strict credit limits

• Forfaiting deals

• Successful settlement of EUR 0.4 bntrade receivables in Greece with government bonds

CHF

m

Financial terms

• $44.50 per share total consideration of $ 5.7 billion

Status

• Commenced tender offer to purchase all of the outstanding common stock of Illumina Illumina to respond within 10 business days

• Commenced proxy process for the next Illumina annual shareholder meeting (proposal to shareholders to appoint a majority of Roche-nominated directors to Illumina’s Board)

• Commenced regulatory process73

Illumina TransactionFinancial terms / Status

74



Outlook

0.96 0.95 0.92 0.90 0.87 0.84 0.820.78

0.87 0.90 0.91 0.93

0.89

1.04

J F M A M J J A S O N D

1.28 1.30 1.29 1.30 1.25 1.21 1.181.12

1.20 1.23 1.23 1.23

1.23

1.38

J F M A M J J A S O N D

average YTD 2011

2011/12 currency impact on Swiss Franc results

75

Monthly average fx rate 2011

CHF/USD

CHF/EUR

average YTD 2010

-15%

-11%average YTD 2011

Q1 HY Sept YTD

FY

Sales -2 0 +3 +3

Core operating profit

-1 +2

Core EPS -2 +1

Assuming the 31 Dec 2011 exchange rates remain stable until end of 2012, 2012 impact is expected to be (%p):

average YTD 2010

Priorities 2012

76

Improve Efficiency

• Achieve ongoing annual savings from ‘Operational Excellence’ of CHF 2.4 bn(vs. CHF 1.8 bn in 2011)

• Continued focus on productivityimprovements and net working capital


• Progress late-stage pipeline• Launch three NMEs

(Zelboraf, Erivedge, pertuzumab)• Launch 16 key diagnostic products

2012: Continuously adapt to a changing environment

Outlook for 2012

77Barring 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*

78

We Innovate Healthcare

7979

Roche Group development pipeline

Marketed products development programmes

Roche Pharma global development programmes

Roche Pharma research and early development

Genentech research and early development

Roche Group 2011 results

Diagnostics

Foreign exchange rate information

phase I (47 NMEs+2 AIs)

NMEAdditional Indication

OncologyImmunologyVirologyCardioMetabolismNeuroscienceOphthalmologyOthers

RG-No Roche Genentech managedCHU Chugai managed

CIF/MEK inh solid tumorsRG7167

Raf & MEK dual inh solid tumorsRG7304

MDM2 ant solid & hem tumorsRG7112

BRAF inh (2) BRAF mut melanoma RG7256

PlGF MAb solid tumorsRG7334

glypican-3 MAb liver cancerRG7686

PDL1 MAb solid tumorsRG7446

BACE inh Alzheimer’s RG7129

ABCA1 inducer dyslipidemiaRG7273

GABRA5 cogn. disordersRG1662

MEK inh solid tumorsRG7420

AKT inhibitor solid tumorsRG7440

MEK inh solid tumorsRG7421

CD22 ADC hem malignanciesRG7593

CRTH2 antag asthmaRG7185

HER3/EGFR m. epithelial tumorsRG7597

anti-angiogenic solid tumorsRG7594

IAP ant solid tum & lymphomaRG7459

FGFR3 MAb oncologyRG7444

CatS antag CV risk in CKD RG7236

GIP/GLP-1 dual ago type 2 diabetesRG7685

PI3K inh solid tumorsRG7604

- ADC prostate ca.RG7450

ADC hematologic tumorsRG7596

ADC ovarian ca.RG7458

- solid tumors or NHLRG7603

CD44 MAb solid tumorsRG7356

ALK inhibitor NSCLCCHUPI3K inh solid tumorsCHU

Bcl-2 inh CLL and NHLRG7601

ADC oncologyRG7599

ChK-1 inh solid tum & lymphomaRG7602

Roche Development PipelineProjects in Phase 1

Tweak MAb oncologyRG7212

V1 receptor antag autism RG7314

- metabolic diseasesRG7652

ADC multiple myelomaRG7598

Oncology Other DTAs

WT-1 peptide cancer vaccineCHU

IL-6 MAb RACHU

Status as of December 31, 2011

HER3 MAb solid tumorsRG7116CSF-1R MAb solid tumorsRG7155

MDM2 ant solid & hem tumorsRG7388

Zelboraf + ipilimumab met. melanomaRG7204

TSLPR MAb asthmaRG7258IL-17 MAb autoimmune diseases RG7624

TLR7 agonist HCVRG7795- infectious diseaseRG7667 *

ADC oncologyRG7600

IL-17 MAb inflammatory diseases RG4934

Lucentis sust. deliv. AMD/RVO/DMERG3645

80

phase II (21 NMEs + 7 Als)

phase III(8 NMEs + 29 Als)

Registration(3 NMEs + 5 Als)

NMEAdditional Indication

RG-No Roche Genentech managedCHU Chugai managedRG105 MabThera is branded as

Rituxan in US and JapanRG1569 Actemra is branded as

RoActemra in EU

vismodegib operable BCCRG3616

onartuzumab (MetMAb) mNSCLCRG3638* *

pertuzumab HER2+ EBC RG1273

pertuzumab HER2+ mBC 2nd lineRG1273

T-DM1 HER2+ EBCRG3502

Avastin ovarian cancer 1st lineRG435*

Tarceva NSCLC EGFR mut 1st lineRG1415*

MabThera ANCA assoc vasculRG105

Xolair chronic idiopathic urticariaRG3648

Rituxan NHL fast infusionRG105Avastin HER2+ BC adjRG435

Avastin NSCLC adjRG435

bitopertin schiz neg symptomsRG1678

Avastin HER2-neg. BC adjRG435Avastin relapsed ovarian caRG4351

Avastin high risk carcinoidRG435Avastin glioblastoma 1st lineRG435

Avastin triple-neg. BC adjRG435

aleglitazar CV risk reduction in T2DRG1439dalcetrapib atherosc CV risk redRG1658

Lucentis AMD 0.5 mg PRN RG3645

pertuzumab HER2+ mBC 1st lineRG1273

Herceptin HER2+ BC sc formRG597Herceptin HER2+ adj BC (2yrs)RG597

GA101 iNHL relapsedRG7159

Tarceva NSCLC adjRG1415

Actemra early RA RG1569

T-DM1 HER2+ mBC 1st lRG3502

GA101 CLLRG7159

Actemra RA DMARD IR H2HRG1569

Avastin mCRC TMLRG435

T-DM1 HER2+ pretreated mBCRG3502

Actemra RA sc formulationRG1569

MabThera NHL sc formulationRG105

ocrelizumab RMSRG1594

Avastin mBC 2nd lineRG435Activase extended time window AISRG36264

Zelboraf papillary thyroid cancerRG7204

Zelboraf metastatic melanomaRG72043

bitopertin schiz subopt controlRG1678

GA101 DLBCLRG7159GA101 iNHL front-lineRG7159

tofogliflozin (SGLT2) type 2 diabetesCHU

EPOCH chemo induced anemiaCHU

Roche Development PipelineProjects in Phase 2, 3 and Registration

Erivedge advanced BCCRG36162

ocrelizumab PPMSRG1594

mericitabine HCVRG7128

lebrikizumab severe asthmaRG3637

onartuzumab (MetMAb) mBCRG3638onartuzumab (MetMAb) mCRC 1LRG3638

Lucentis diabetic macular edemaRG36454

1 submitted in EU2 approved in US, filed in EU3 approved in US, EU: CHMP pos. opinion4 submitted in US

T-DM1 HER2+ mBC 3rd lRG3502

oxLDL MAb sec prev CV eventsRG7418

rontalizumab SLERG7415

danoprevir HCVRG7227 *

mGluR5 antag TRDRG7090

LT alpha MAb RARG7416

gantenerumab Alzheimer’sRG1450

P selectin MAb ACS/CVDRG1512

M1 prime MAb asthmaRG7449

11 beta HSD inh metabolic diseasesRG4929

rhuMab-Beta7 ulcerative colitisRG7413

anti-factor D Fab geographic atrophyRG7417

EGFL7 MAb solid tumorsRG7414

Abeta MAb Alzheimer‘sRG7412

MAO-B inh Azheimer’sRG1577

EGFR MAb solid tumorsRG7160


mGluR2 antag depressionRG1578

PI3K/mTOR inh solid & hem tumorsRG7422

setrobuvir HCVRG7790

pertuzumab HER2+ gastric cancerRG1273

* LIP decision Dec 2011

PI3K inh solid tumorsRG7321

* approved in the EU ** FPI Jan 2012

OncologyImmunologyVirologyCardioMetabolismNeuroscienceOphthalmologyOthers

Suvenyl enthesopathyCHU

81

Changes to the development pipelineSince Q3 2011 update on October 13, 2011

82

New to Phase I New to Phase II New to Phase III New to Registration

8 NMEs transitioned from Ph0RG7258 TSLPR MAb asthma RG7155 CSF-1R MAb solid tumorsRG7116 HER3 MAb solid tumorsRG7388 MDM2 solid and hem tumorsRG7600 ADC oncologyRG7624 IL-17 MAb autoimmune diseasesRG7667 infectious disease1 NME following acquisition of AnadysRG7795 TLR7 agonist in HCV 2 AIs following FPIRG7204 Zelboraf + ipilimumabmetastatic melanomaRG3645 Lucentis sustained delivery AMD/RVO/DME

3 NMEs transitioned from Ph1RG7422 PI3K/mTOR inh solid & hem tumorsRG1578 mGluR2 antag depressionRG7321 PI3K inh solid tumors

1 NME following acquisition of AnadysRG7790 setrobuvir HCV

1 AIRG1273 pertuzumab HER2+ gastric cancer

1 NME transitioned from Ph2RG3638 onartuzumab (MetMAb) mNSCLC

1 AI transitioned from Ph2RG1273 pertuzumab HER2+ EBC

1 AI added by Chugai (in-licensed from Denko)CHU Suvenyl enthesopathy

1 NME FiledRG1273 pertuzumab HER2+ mBC1st line

1 AI FiledRG105 Rituxan NHL fast infusion

Removed from Phase I Removed from Phase II Removed from Phase III Removed from RegistrationDiscontinuation (2 NMEs)RG7166 triple reuptake inhdepressionRG7432 nucleoside pol inh HCV

Reverted to Partner (1 NME)RG7433 navitoclax (ABT-263) solid & hematological tumors

Discontinuation (1 AI)RG435 Avastin+HerceptinHER2+ mBC 1st line

GA101(RG7159)NHL aggress. DLBCL

NME submissions and their additional indicationsProjects currently in Phase 2 and 3

Unless stated otherwise, submissions are planned to occur in US and EU. indicates a submission which has occurred with regulatory action pending* NDA timeline is driven by the event rate in dal-OUTCOMES; updated timeline estimate will be provided in Q3 2012 after 2nd year event rate is known# negative symptoms and sub-optimal control

NeuroscienceOphthalmologyNME

OncologyImmunologyVirologyCardioMetabolism

T-DM1 (RG3502)HER2+ advanced mBC

glycine reuptake inhib(RG1678) schizophrenia#

mericitabine(RG7128) HCV

GA101 (RG7159)CLL

dalcetrapib (RG1658)*atherosclerosis CV risk red.

onartuzumab (MetMAb)(RG3638) mNSCLC

T-DM1 (RG3502)HER2+ mBC 1st line

ocrelizumab (RG1594)PPMS and RMS

danoprevir (RG7227)(HCV protease inh)

2012 2013 2014 2015 2016


onartuzumab (MetMAb)mBC, mCRC

mGluR5 antag (RG7090)Tx resistant depression

lebrikizumab (RG3637) asthma

EGFR MAb (RG7160)solid tumors

anti-factor D Fab (RG7417)geographic atrophy

aleglitazar (RG1439)CV risk reduction in T2D

GA101(RG7159)NHL indolent refractory

pertuzumab (RG1273)HER2+ EBC

2011

Erivedge (RG3616) adv. basal cell ca

pertuzumab (RG1273)HER2+ mBC 1st line

Zelboraf (RG7204)met. melanoma

83

TarcevaNSCLC adj (US)

AvastinNSCLC adj

Tarceva (US)NSCLC EGFR mutation 1st line

2011 2012 2013 2014 Post 2014

HerceptinHER2+ BC adj 2 year

Avastintriple negative BC adj

Avastinglioblastoma 1st line

AvastinHER2+ BC adj

Herceptinsc formulation HER2+

AvastinHER2- BC adj

Actemraearly RA

Xolair (US)chronic idiopathic urticaria

ActemraRA DMARD IR H2H (EU)

Avastinovarian cancer 1st line (US)

AvastinmCRC TML

OncologyImmunologyVirologyCardioMetabolism

NeuroscienceOphthalmology

Actemrasc formulation

AvastinmBC 2nd line (EU)

MabTherasc formulation (EU)

indicates submission to Health Authorities has occurred.

Unless stated otherwise, submissions are planned to occur in US and EU.

LucentisAMD 0.5 mg PRN (US)

Activaseextend. time window AIS (US)

Avastinrelapsed ovarian cancer (EU)

Avastinrelapsed ovarian cancer (US)

Lucentisdiabetic macular edema (US)

TarcevaNSCLC adj (EU)

RituxanNHL faster infusion (US)

ActemraDMARD IR (US)


Submissions of additional indications for existing productsProjects currently in Phase 2 and 3

84

85

We Innovate Healthcare

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