Roche. HY 2013 results. Basel, July 25, 2013

Transcription

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2 Roche HY 2013 results Basel, July 25,

3 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 All mentioned trademarks are legally protected. 3

4 Group Severin Schwan Chief Executive Officer 4

5 HY 2013: Highlights HY 2013 performance Strong Pharma performance, driven by US; solid growth for Diagnostics 12% core EPS growth 1, driven largely by strong underlying business Solid operating free cash flow (+4% 1 ) Innovation Move into phase III: Bcl2 inhibitor and anti-pdl1 Data read-outs for potential phase III decisions: etrolizumab and anti-factor D Positive CHMP recommendation for Herceptin SC Discontinued: aleglitazar and GA201 1 CER=Constant Exchange Rates 5

6 HY 2013: Strong sales momentum continues HY 2013 HY 2012 Change in % CHF bn CHF bn CHF CER Pharmaceuticals Division Diagnostics Division Roche Group CER=Constant Exchange Rates 6

7 Continued strong sales growth 8% 6% 4% 2% 0% 0% 0% 1% 4% 2% 6% 4% 6% 6% 4% -2% -4% -3% -5% -6% Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 All values at constant exchange rates 7

8 E7 Group sales: Sustainable growth in major emerging markets CHF m 1' % 1' % YoY CER growth 1'200 1'000 Diagnostics Pharma Q1 Q2 Q3 Q4 Q1 Q Absolute amounts at 2012 exchange rates, growth at CER=Constant Exchange Rates E7: Brazil, China, Mexico, India, South Korea, Russia, Turkey 8

9 HY 2013: Increase in operating profit & margin Group core operating profit (CHF bn) and margin 40.7% 35.0% 37.2% 38.1% 38.5% +10% at CER CER=Constant Exchange Rates HY 2009 HY 2010 HY 2011 HY 2012 HY

10 HY 2013: +12% Core EPS growth 1 +12% at CER CHF HY 2009 HY 2010 HY 2011 HY 2012 HY CER=Constant Exchange Rates 10

11 2013: Late-stage enabling milestones lebrikizumab asthma gantenerumab 1 Alzheimer s ocrelizumab MS bitopertin schizophrenia Bcl-2i (GDC 0199) hem. cancers anti-pdl1 solid tumours cobimetinib (MEKi) melanoma onartuzumab (MetMAb) NSCLC obinutuzumab (GA101) CLL Phase III decision pending etrolizumab ulcerative colitis Data readout 2H 2013 / 1H 2014 mglur2 antagonist treatment-resistant depression mglur5 antagonist treatment-resistant depression crenezumab Alzheimer's CD22/CD79b ADC Hem. cancers anti-egfl7 solid tumours PI3 kinase solid tumours dual PI3 kinase/mtor solid tumours Partnering options HCV DAA HepC Kadcyla HER2+ BC anti-factor D geographic atrophy inclacumab (P selectin) ACS/CVD anti-pcsk9 metabolic diseases Ph III NMEs 1 Phase II/III label enabling Moved to phase III Oncology Neuroscience Virology Immunology Ophthalmology Metabolism 11

12 2013 Outlook Group sales growth 1 In line with sales growth recorded in 2012 Core EPS growth 1 Ahead of sales growth Dividend outlook Further increase dividend 1 At constant exchange rates; Excluding one-off Past Service Income impact of CHF 196 m on core net income 12

13 Pharmaceuticals Division Daniel O Day COO Roche Pharmaceuticals 13

14 HY 2013 results Innovation Outlook 14

15 HY 2013: Pharma sales US as the major growth contributor HY 2013 HY 2012 Change in % CHF m CHF m CHF CER Pharmaceuticals Division 18,162 17, United States 7,553 6, Europe 4,652 4, Japan 1,672 1, International 4,285 4, CER=Constant Exchange Rates 15

16 HY 2013: Pharma Division Profit margin improvement driven by higher sales and lower costs growth HY 2013 CHF m % sales Sales 18, vs CER growth 6% Royalties & other op inc Cost of sales -3, M & D -2, R & D -3, G & A % 7% 3% 4% Admin*: +1% 11% Core operating profit 8, % +8% in CHF CER=Constant Exchange Rates; * on comparable basis 16

17 HY 2013: Pharma sales Oncology, Tamiflu and Actemra main growth drivers Avastin +12% Tamiflu Herceptin Actemra/RoActemra Perjeta MabThera/Rituxan +79% +5% +33% NM +3% Evista Boniva/Bonviva Pegasys -20% -100% -47% US Europe Japan International Absolute amounts in CHF m at Constant Exchange Rates (CER) average 2012; all growth rates at CER 17

18 HY 2013 sales: Oncology franchise up 8% MabThera/ Rituxan CER growth +3% Solid demand with high penetration in developed markets impacted by timing of tenders in emerging markets HER2 Herceptin Perjeta +11% Kadcyla Solid demand for Herceptin supported by newly launched Perjeta and Kadcyla Avastin +12% Continued launch in ovarian cancer (EU), increased use in mcrc due to treatment through multiple lines label Xeloda +2% US supply of IV 5FU normalised Tarceva +4% Good uptake in 1 st line EGFR mut+ NSCLC, pressure in 2 nd line wild type Zelboraf +84% Fully penetrated in US, strong growth in Europe CHF bn CER=Constant Exchange Rates Oncology HY 2013 sales: CHF 11.2 bn 18

19 Avastin: Strong growth supported by ovarian cancer and treatment through multiple lines CHF m 1'800-6% -9% -10% -2% 1% 5% 11% 8% 11% 13% YoY CER growth 1' Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 International Japan Europe US Absolute amounts at 2012 exchange rates; growth at CER=Constant Exchange Rates 19

20 Avastin: Standard of care in multiple tumor types with the largest breadth of data 1 st line mcrc 2 nd line mcrc TML mcrc 1 st line NSCLC 1 st line Ovarian 2 nd line Ovarian US EU 1 st line mrcc Glioblastoma * Filed 1 st line mbc Recurrent Cervical To discuss with FDA and EMA * Accelerated approval in recurrent GBM; 2012 US sales CHF ~170 m 20

21 HER2 franchise: Further improving standard of care Strong US uptake in HER2+ mbc 2line and beyond TH3RESA study (3L HER2+ BC Kadcyla vs. physicians choice) met primary end-point Encouraging rollout in Europe FDA priority review for neoadjuvant HER2+ BC (PDUFA Oct. 31 st ) Positive CHMP opinion issued in June

22 Lucentis: DME indication supporting growth Q1 '10 Q2 '10 Lucentis quarterly sales (USD m) Q3 '10 Q4 '10 Q1 '11 Q2 '11 Eylea wamd Q3 '11 Q4 '11 Q1 '12 Lucentis DME Q2 '12 Q3 '12 Q4 '12 Q1 Q2 '13 '13 AMD 0.5 mg less frequent than monthly dosing regimen supports market share stabilisation RVO Lucentis share stable DME Further increase in patient share contributing to the majority of Lucentis growth AMD=wet age-related macular degeneration; RVO=retinal vein occlusion; DME=diabetic macular edema 22

23 E7 Pharma sales: Emerging markets remain strong CHF m 1'200 1' H % 2H % +11% +11% +24% -6% -3% -4% YoY CER growth India Korea % -5% Russia Mexico 400 Turkey % Brazil China 0 Q1 Q2 Q3 Q4 Q1 Q CER=Constant Exchange Rates 23

24 International: Strong China growth offsetting the timing of tenders and political unrest in other regions International region HY 2013: +5% China 159 Strong growth in China driven by Herceptin, Tamiflu, Avastin and MabThera Turkey 34 Turkey driven by Avastin, MabThera and Herceptin Morocco -8 Syria -10 Phasing of tenders impacting YoY growth (Herceptin, Avastin, MabThera) Algeria -131 CHF m Absolute amounts in CHF m at Constant Exchange Rates (CER) average 2012; all growth rates at CER 24

25 HY 2013 results Innovation Outlook 25

26 GA101 in CLL: FDA approval expected by end 2013 CLL11 study stage Ia Progression-free survival Clb: Median 10.9 mo 1-year PFS 27% Stratified HR: % CI: p < (log-rank) GA101-Clb: Median 23.0 mo* 1-year PFS 84% n at risk Clb Stage II met primary end-point (superior PFS of GA101 vs. rituximab) Priority review granted in the US: PDUFA date 20 December 2013 Breakthrough therapy designation for CLL Next phase III read-outs: 2015 (r/r inhl and DLBCL) 2017 (1L NHL) G-Clb ASCO

27 Anti-PDL1 NSCLC development plans Phase II FIR Study: Dx-positive advanced mnsclc Stage IIIB/IV NSCLC N=100 Primary end-point: Overall Response Rate Anti-PDL mg IV Q3 weeks Ongoing Expect data: 2014 Phase III OAK Study: Dx+/Dx- 2/3L mnsclc Metastatic NSCLC (2/3L) Docetaxel 75 mg/m2 IV Q3 wk Anti-PDL mg IV Q3 wk Expect FPI: Q Expect data: 2016 Primary end-point: Overall Survival 27

28 Subcutaneous deliveries: Patients convenience and benefit to healthcare system Herceptin subcutaneous MabThera subcutaneous Actemra subcutaneous Herceptin ex-us, Japan (~65% sales) MabThera ex-us, Japan (~50% sales) RA global market ~30% Metastatic ~70% Adjuvant RA 17% Oncology 83% IV ~30% ~70% Subcutaneous 28

29 HY 2013 results Innovation Outlook 29

30 2013: Late-stage enabling milestones lebrikizumab asthma gantenerumab 1 Alzheimer s ocrelizumab MS bitopertin schizophrenia Bcl-2i (GDC 0199) hem. cancers anti-pdl1 solid tumours cobimetinib (MEKi) melanoma onartuzumab (MetMAb) NSCLC obinutuzumab (GA101) CLL Phase III decision pending etrolizumab ulcerative colitis Data readout 2H 2013 / 1H 2014 mglur2 antagonist treatment-resistant depression mglur5 antagonist treatment-resistant depression crenezumab Alzheimer's CD22/CD79b ADC Hem. cancers anti-egfl7 solid tumours PI3 kinase solid tumours dual PI3 kinase/mtor solid tumours Partnering options HCV DAA HepC Kadcyla HER2+ BC anti-factor D geographic atrophy inclacumab (P selectin) ACS/CVD anti-pcsk9 metabolic diseases Ph III NMEs 1 Phase II/III label enabling Moved to phase III Oncology Neuroscience Virology Immunology Ophthalmology Metabolism 30

31 Planned data presentations in 2H 2013 Toronto, Aug Amsterdam, 27 Sep-01 Oct ASH New Orleans, 7-10 Dec anti-factor D Phase II in geographic atrophy anti-pdl1 Updated Phase I data Kadcyla (HER2+mBC 3rd line Kadcyla vs. physicians choice) (to be submitted) GA101 (to be submitted) CLL11 stage II rituximab vs. GA101 Combos with bendamustine & FC chemotherapy (GALTON study) 31

32 2013: Major clinical and regulatory news flow Regulatory Phase III Compound Indication Milestone Avastin mcrc (TML) US EU approval Avastin Newly diagnosed glioblastoma EU filing Actemra subcutaneous RA US approval Erivedge Advanced BCC EU approval Herceptin subcutaneous HER2-positive BC EU approval Lucentis wamd (HARBOR) US approval Perjeta 1 st line HER2-positive mbc EU approval Perjeta Neoadjuvant HER2+ BC US filing US approval Tarceva EGFR mut+ 1 st line NSCLC US approval Kadcyla 2 nd line HER2-positive mbc US EU approval obinutuzumab (GA101) Front line CLL US approval aleglitazar Metabolic diseases Ph III obinutuzumab (GA101) Front line CLL Ph III Tarceva Adjuvant NSCLC Ph III RADIANT Xolair Chronic idiopathic urticaria Ph III US filing Milestones previously expected later than 2013 Outcome studies are event driven, timelines may change 32

33 Diagnostics Division Roland Diggelmann COO Roche Diagnostics Picture

34 HY 2013: Diagnostics sales Growth driven by Professional Diagnostics HY 2013 HY 2012 change in % CHF m CHF m CHF CER Diagnostics Division* 5,133 5, Professional Diagnostics 2,809 2, Diabetes Care 1,205 1, Molecular Diagnostics Tissue Diagnostics CER=Constant Exchange Rates; * Applied Science integrated into Professional Diagnostics and Molecular Diagnostics 34

35 HY 2013: Diagnostics sales Growth driven by emerging markets CHF 5,133 m CER sales growth 1,275 North America 25% Diagnostics Division 3% 370 Latin America 7% North America -1% EMEA¹ 1% 823 Asia Pacific 16% Latin America 11% 2, Japan 5% Asia Pacific 10% EMEA 1 47% Japan 1% CER=Constant Exchange Rates ¹ Europe, Middle East and Africa 35

36 HY 2013: Diagnostics Profit growth and margin increase due to lower operating expenses Sales 5, HY vs CHF m % sales CER growth 3% Royalties & other op inc Cost of sales 1-2, M & D -1, R & D G & A % -1% -1% 2% 3% Admin: +6% Core operating profit 1, % CER=Constant Exchange Rates 1 Cost of goods sold & period cost 36

37 Integration of Roche Applied Science New reporting structure RAS Segment Description Integrated into Rationale qpcr & NAP 1 Biochemical Reagents Sequencing PCR products to life science customers Sequencing platforms and reagents Roche Molecular Diagnostics (RMD) Technology flow from research to clinical setting Commercial leverage Custom Biotech Reagents for biopharmaceuticals manufacturing Roche Professional Diagnostics (RPD) Leverage product synergies 1 Nucleic acid purification and gene expression 37

38 New reporting structure Overview of Roche Diagnostics In Vitro Diagnostics & Life Sciences Professional Diagnostics (RPD) Molecular Diagnostics (RMD) Tissue Diagnostics (RTD) Diabetes Care (RDC) 38

39 HY 2013: Diagnostics highlights CER growth Professional Dia +6% Growth driven by immunoassay business (+12%); launch of novel tests in lung cancer and transplantation Diabetes Care -5% Continued challenging environment; ongoing restructuring; strong market uptake of recent product launches Molecular Dia +1% FDA approval of cobas EGFR* test; strong HPV test sales (+114%) and FDA submission of primary screening claim Tissue Dia CHF bn +6% EMEA North America RoW Strong growth in EMEA and emerging markets; continued impact in US of changes in guidelines and reimbursement EMEA=Europe, Middle East and Africa; CER=Constant Exchange Rates; * Companion diagnostic test for Tarceva 39

40 RPD: Differentiated strategy driving strong growth Delivering patient and customer benefits Increase testing efficiency cobas 8100 preview at Euromedlab 1 Provides total lab automation cobas 8100 Integrated pre and post analytics Provide medical value Q2 launches progrp test for SCLC 2 aids in early differential diagnosis for SCLC expands tumor marker offering 3 Cyclosporine and Tacrolimus tests for transplant patients monitoring and optimal dosing for efficacy vs side effects personalised patient treatment 1 Expected launch in autumn 2013; 2 Small cell lung cancer; 3 >CHF 500m revenues with 14% growth in HY13 40

41 RPD: Acquisition of Constitution Medical Inc. Strengthen our commitment to hematology testing Integrated hematology system 1 Innovative technology Software algorithms recognise and classify digitalised blood cells printed on slides Addresses key customer needs Fully automated system Saves lab space, consumables and manual processes Provides fast and accurate results Sales USD m Hematology market 2 +7% 1,872 2,135 Strengthens product portfolio New hematology capability to reinforce IVD leadership Expands core lab offering In development, not yet cleared by FDA. Not available for sale within or outside the United States figures from Independent Industry Analysis;

42 RMD: FDA approval and launch of cobas EGFR test Companion diagnostic for Tarceva cobas 4800 System Fully automated PCR platform Approved for EGFR mutated NSCLC Expansion of cobas 4800 menu - BRAF, EGFR, KRAS 1,PIK3CA 2, HPV, CT/NG cobas EGFR test Identifies patients with EGFR mutations Provides consistent and reliable results 1 Available with CE mark 2 Available for Research Use Only 42

43 Diabetes Care: Adapting to a changing environment Reimbursement cuts and increased competition from low price providers Implementation of Medicare cut for bgm 1 strips as of July 1, 2013 Increased pricing pressures in emerging markets, especially Asia Ongoing restructuring measures to adapt to current environment Consolidation of R&D and containment of marketing and admin. costs Profitability protection as a result of restructuring Innovation remains the key for differentiation, success and better patient outcomes Good uptake of premium products in the market Clinical data supports increased patient benefit from innovative products: Accu-Chek Aviva Expert automatic bolus advisor for insulin dosing 2 Accu-Chek Mobile strip-free bgm 1 system 3 1 Blood glucose monitoring; 2 ABACUS study at American Diabetes Association 2013; 3 ExAcT study at ATTD 2013 Accu-Chek Aviva Expert 43

44 Key launches 2013 Area Product Market BA 1 Labs cobas 8100 Next generation modular pre-analytics EU RPD Instruments / Devices Tests/ Assays Life Sciences Diabetes Care Oncology Infectious Diseases Transplant GS FLX+ long amplicons- Software for long read targeted sequencing Accu-Chek Insight- Next generation insulin pump & bgm 2 system Accu-Chek Active LCM- Next-generation bgm 1 meter with maltose independent test strips Calcitonin Medullary thyroid cancer progrp- Small cell lung cancer CINtec PLUS Cytology- Cervical pre-cancer ER- Breast cancer EGFR- Lung cancer MPX 2.0 Next generation blood screening multiplex test for HIV, HCV & HBV CAP/CTM HCV 2.0 Next generation HCV viral load test Cyclosporin, Tacrolimus immunosuppressive drug monitoring WW EU EU EU EU EU US US US US EU RMD RDC RDC RPD RPD RTD RTD RMD RMD RMD RPD Sequencing SeqCap EZ Reagent Kits - Targeted next gen. sequencing WW RMD 1 Business Areas. RPD: Roche Professional Diagnostics; RDC: Roche Diabetes Care; RMD: Roche Molecular Diagnostics, RTD: Roche Tissue Diagnostics; 2 blood glucose monitoring 44

45 Finance Alan Hippe Chief Financial Officer 45

46 HY 2013: Finance highlights Business highlights Strong operating profit growth (Group +10%) Core EPS +12% Solid operating free cash flow (+4%) Improved financial result Positive development in interest expenses (-19%) Negative impact of FX losses driven by Venezuela Early bond recall of USD 400m with CHF 78 m cost Net debt down by CHF 3.7 bn since June 2012 Driven by strong cash generation Others Past Service Income: CHF 196 m core net income related to changes in pension plans Alignment of cash flow reporting with peers 46

47 HY 2013: Group performance Core EPS growth +12% 1 CHF m % Change HY 2013 HY 2012 CHF CER Sales 23,295 22, Core operating profit 9,488 8, as % of sales Core net income 6,649 5, as % of sales Attributable to Roche shareholders 6,542 5, Core EPS (CHF) Operating free cash flow 7,445 7, % of sales Free cash flow -1,392-1, % of sales CER=Constant Exchange Rates 47

48 HY 2013: Group operating performance Profit and margin increase due to higher sales and lower operating costs HY 2013 CHF m % sales 2013 vs CER growth Sales 23, % Royalties & other op inc Cost of sales -5, M & D -4, R & D -4, G & A % Excl. PSI: +7% 5% 2% 4% Admin 2 +6% 10% COGS & PC 1 : +3% Core operating profit 9, % in CHF 10% CER=Constant Exchange Rates 1 Cost of goods sold & period cost 2 on comparable basis

49 HY 2013: Core operating profit and margin Solid sales growth and cost control CHF m 38.1% 38.5% 40.7% 43.9% 45.3% 46.9% +2.0 %p 1 (+2.2 %p) +1.2 %p 1 (+1.6 %p) 21.9% 21.1% % of sales 8,251 8, % 1 (+10 %) 9,488 7,385 7, % 1 (+8 %) 8, % +1.4 %p 1 (+1.2 %p) , % 1 (+9 %) 1,083 1 CER=Constant Exchange Rates Roche Group Pharma Division Diagnostics Division 48

50 HY 2013: Past Service Income (PSI) in CHF m General & administration Operating profit Group Pharma Diagnostics Corporate Deferred taxes Net income H 2013: Minimal impact expected 49

51 HY 2013: Group core tax rate Higher US profit contribution in % +1.1 Relative more core profits in US, less in RoW 22.7, Driven by US Federal R&D tax credits 2012/13, HY 2012 HY

52 HY 2013: Core net financial result Lower interest expenses partly offset by fx losses CHF m Improvement of 7% in CHF / 4% at CER HY 2012 HY 2013 FX G/L Debt Interest Net income All other, redemption expense from equity net securities 51 CER=Constant Exchange Rates

53 HY 2013: Operating free cash flow and margin 4% increase at CER despite high comparator base CHF m 38.5% 38.5% 38.7% % of sales 31.7% 32.3% 32.0% -0.4 % p 1 (-0.3 % p) -0.2 % p 1 (+0.2 % p) 6,862 7, % 1 (+3 %) 7,445 6,480 6, % 1 (+5 %) 7, % 16.1% 13.6% -1.8 % p 1 (-2.5 % p) CER=Constant Exchange Rates Roche Group Pharma Division Diagnostics Division % 1 (-13 %)

54 Operating free cash flow: Impact of reporting alignment Previous methodology Refined methodology Excludes impact of employee stock options Operating Free Cash Flow ,733 13, ,389 16, ,170 7,244 7,445 6,531 Free Cash Flow +53 3,904 3,957 4, , ,309-1,235-2,306-1, HY HY

55 HY 2013: Debt maturity profile 66% of Genentech related debt repaid CHF bn 5 4 Maturity EUR 3.31 bn Call of USD 0.40 bn 3 2 Call of USD 1.75 bn USD EUR CHF GBP Of the CHF 48 bn bonds and notes issued to finance the Genentech transaction, cumulative CHF 32 bn have been repaid as of June 30, 2013* Nominal actual FX rates; *Original net proceeds in CHF 54

56 Balance sheet: Net debt to total assets Lower than HY % 29.1% 25.3% 22.9% Net debt / total assets 16.4% 55,298 61,580 59,612 64,808 59,414 Total assets (CHF m) -10,599-17,959-15,566-13,620-17, Jun Dec Jun Dec Jun 2013 Net debt (CHF m) 55

57 Currency impact on Swiss Franc results 2013 Moderate currency impact expected CHF / USD Average YTD % % J F M A M J J A S O N D CHF / EUR +1% Assumed average YTD % Monthly avg fx rates 2013 Fx rate at 28 June 2013 Q1 HY Sep FY YTD Sales % +2% +2% +2% Assuming the 28 June 2013 exchange rates remain stable until end of 2013, 2013 impact is expected to be (%p): Core operating -1-2 profit Core EPS -2-3 J F M A M J J A S O N D 56

58 2013 Outlook Group sales growth 1 In line with sales growth recorded in 2012 Core EPS growth 1 Ahead of sales growth Dividend outlook Further increase dividend 1 At constant exchange rates; Excluding one-off Past Service Income impact of CHF 196 m on core net income 57

59 Doing now what patients need next 58

60 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 HY 2013 results Diagnostics Foreign exchange rate information 59

61 Changes to the development pipeline Q update New to Phase I New to Phase II New to Phase III New to Registration 3 NMEs RG7853 ALK inhibitor in NSCLC RG7446 PD-L1 MAb in mnsclc RG7601 Bcl-2 inh in CLL relapsed/refractory 17pdel 3 NMEs RG7410 in metabolic diseases RG7745 in infectious diseases RG7842 in solid tumors 3 AIs RG7446 PD-L1+Zelboraf in metastatic melanoma RG7446 PD-L1 + Avastin in solid tumors RG7446 PD-L1 in solid tumors 3 AIs RG1273 Perjeta in HER2-positive gastric cancer RG435 Avastin in recurrent cervical cancer RG1569 Actemra in giant cell arteritis 1 NME NDA submissions EU and US RG7159 obinutuzumab in CLL 1 AI submission to FDA RG1273 Perjeta in neoadjuvant HER2-positive breast cancer Removed from Phase I Removed from Phase II Removed from Phase III 1 NME due to selection of alternative molecule RG7112 MDM2 ant. in solid and hematological tumors 1 NME RG7160 imgatuzumab (GA201, EGFR MAb) in solid tumors 2 AIs RG3638 onartuzumab in triple-neg mbc 1 st /2 nd line SST arbaclofen in autism spectrum disorder (opt-in opportunity) 2 NMEs RG1439 aleglitazar CV risk reduction post ACS in type 2 diabetes; complete programme terminated SST arbaclofen in fragile X syndrome (opt-in opportunity) 1 NME outlicensed by Chugai tofogliflozin (SGLT2) in type 2 diabetes Removed from Registration 1 NME EU approval RG3616 Erivedge in advanced basal cell carcinoma 1 AI EU+US approval RG1569 RoActemra/Actemra in polyarticular JIA 1 AI EU approval RG105 MabThera in ANCA associated vasculitis 1 AI US approval RG1415 Tarceva in NSCLC EGFR mut 1 st line Status as of June 30,

62 Roche Group development pipeline Phase I (35 NMEs + 5 AIs) Oncology RG7116 HER3 MAb solid tumors RG7155 CSF-1R MAb solid tumors RG7167 MEK inh solid tumors RG7212 Tweak MAb oncology RG7221 Ang2-VEGF MAb oncology RG7304 Raf & MEK dual inh solid tumors RG7356 CD44 MAb solid tumors RG7388 MDM2 ant solid & hem tumors RG7420 MEK inh solid tumors RG7440 AKT inhibitor solid tumors RG7446 PDL1+Zelboraf metastatic melanoma RG7446 PDL1+Avastin solid tumors RG7446 PDL1 solid tumors RG7450 Steap1 ADC prostate ca RG7458 MUC16 ADC ovarian ca ADC RG7598 ADC multiple myeloma ADC RG7599 NaPi2b ADC oncology ADC RG7600 ADC oncology RG7601 Bcl-2 inh hem tumors RG7602 ChK1 inh solid tum & lymphoma RG7604 PI3K inh solid tumors RG7636 ETBR ADC metastatic melanoma RG7666 PI3k inh glioblastoma 2L RG7741 ChK1 inh(2) solid tum and lymphoma RG solid tumors CHU PI3K inh solid tumors CHU WT-1 peptide cancer vaccine Other disease areas RG7624 IL-17 MAb autoimmune diseases CHU IL-6 MAb RA CHU CIM331 atopic dermatitis RG7745* - infectious diseases RG7795 TLR7 agonist HBV RG7410* metabolic diseases RG7697 GIP/GLP-1 dual ago type 2 diabetes RG1662 GABRA5 NAM cogn. disorders RG7129 BACE1 inh Alzheimer s RG7203 PDE10A inh schizophrenia RG7314 V1 receptor antag autism RG3645 Lucentis sust. deliv. AMD/RVO/DME FIXa CHU/FX FIXa /FX bispecific MAb hemophilia A New Molecular Entity (NME) Additional Indication (AI) Oncology Immunology Infectious Diseases CardioMetabolism Neuroscience Ophthalmology Others RG-No Roche Genentech managed CHU Chugai managed Status as of June 30, 2013 *FPI Jul

63 Roche Group development pipeline Phase II (25 NMEs + 10 Als) RG1273 Perjeta HER2+ mbc 2 nd line RG3502 Kadcyla (T-DM1) HER2+ gastric cancer RG3616 Erivedge operable BCC RG3638 onartuzumab mcrc 1 st line RG3638 onartuzumab NSCLC non squamous 1 st l RG3638 onartuzumab NSCLC squamous 1 st line RG3638 onartuzumab glioblastoma 2 nd line RG7204 Zelboraf papillary thyroid cancer pictilisib RG7321 pictilisib (PI3K inh) solid tumors Pa RG7414 parsatuzumab (EGFL7 MAb) solid tumors RG7422 PI3K/mTOR inh solid & hem tumors RG7446 PD-L1 MAb mnsclc RG7593 CD22 ADC hem tumors RG7596 CD79b ADC hem tumors RG7597 HER3/EGFR MAb m. epithelial tumors RG7601* Bcl-2 inh CLL rel/refract 17pdel RG7853 ALK inhibitor NSCLC RG7686 glypican-3 MAb liver cancer RG1569 Actemra systemic sclerosis RG7413 etrolizumab ulcerative colitis RG7415 rontalizumab systemic lupus erythem RG7449 quilizumab asthma RG7128 mericitabine HCV RG7227 danoprevir HCV RG CMV RG7790 setrobuvir HCV RG1512 inclacumab ACS/CVD RG7652 PCSK9 MAb metabolic diseases RG1450 gantenerumab Alzheimer s RG1577 MAO-B inh Alzheimer s RG1578 mglu2 NAM depression RG1678 bitopertin obsessive compulsive dis. RG7090 mglu5 NAM tx.resistant depression RG7412 crenezumab Alzheimer s RG7417 lampalizumab (factor D) geo. atrophy *FPI Jul 2013 RG435 RG435 RG435 RG435 RG435 1 RG435 RG435 1 RG435 RG1273 RG1273 RG1415 RG3502 RG3502 RG3502 RG3638 RG3638 RG7159 RG7159 RG7159 RG7204 RG7421 RG1569 RG1569* RG3637 RG3648 RG3806 CHU RG1594 RG1594 RG1678 RG1678 Phase III (6 NMEs + 25 Als) Avastin HER2+ BC adj Avastin HER2-neg. BC adj Avastin NSCLC adj Avastin high risk carcinoid Avastin ovarian cancer 1 st line Avastin rel. ovarian ca. Pt-resistant Avastin rel. ovarian ca. Pt-sensitive Avastin cervical cancer recurrent Perjeta HER2+ early BC Perjeta HER2+ gastric cancer Tarceva NSCLC adj Kadcyla (T-DM1) HER2+ mbc 3 rd line Kadcyla (T-DM1) HER2+ mbc 1 st line Kadcyla (T-DM1) HER2+ early BC onartuzumab NSCLC 2 nd /3 rd line onartuzumab gastric cancer obinutuzumab DLBCL obinutuzumab inhl relapsed obinutuzumab inhl front-line Zelboraf m. melanoma adj cobimetinib (MEK inh) m. melanoma Actemra early RA Actemra giant cell arteritis lebrikizumab severe asthma Xolair chronic idiopathic urticaria oral octreotide acromegaly Suvenyl enthesopathy ocrelizumab RMS ocrelizumab PPMS bitopertin schiz neg symptoms bitopertin schiz subopt control Status as of June 30, 2013 Registration (2 NMEs + 5 Als) Perjeta HER2+ BC neoadj RG105 2 MabThera NHL sc formulation RG435 2 Avastin glioblastoma 1 st line RG597 2 Herceptin HER2+ BC sc form RG RG Kadcyla (T-DM1) HER2+ pretreat. mbc RG7159 obinutuzumab CLL RG1569 Actemra RA sc formulation 1 US only: ongoing evaluation for FDA submission 2 Submitted in EU 3 Submitted in US 4 Approved in US; submitted in EU New Molecular Entity (NME) Additional Indication (AI) Oncology Immunology Infectious Diseases CardioMetabolism Neuroscience Ophthalmology RG-No Roche Genentech managed CHU Chugai managed RG105 MabThera is branded as Rituxan in US and Japan RG1569 Actemra is branded as RoActemra in EU 62

64 NME submissions and their additional indications Projects currently in phase 2 and 3 onartuzumab (MetMAb) gastric cancer & other AIs obinutuzumab (GA101) frontline inhl Bcl-2 inh (RG7601) CLL and NHL obinutuzumab (GA101) DLBCL pictilisib (RG7321) PI3 kin inh solid tumors lebrikizumab (RG3637) asthma parsatuzumab (RG7414) EGFL7 Mab solid tumors etrolizumab (RG7413) ulcerative colitis bitopertin (RG1678) obsessive compulsive dis. PI3K/mTOR inh (RG7422) solid & hem tumors quilizumab (RG7449) asthma gantenerumab (RG1450) Alzheimer s PD-L1 MAb (RG7446) solid tumors mericitabine (RG7128) HCV MAO-B inh (RG1577) Alzheimer s CD22 ADC (RG7593) CD79b ADC (RG7596) heme tumors danoprevir (RG7227) HCV mglu2 NAM (RG1578) depression onartuzumab (MetMAb) mnsclc, 2 nd /3 rd line obinutuzumab (GA101) inhl relapsed HER3/EGFR MAb (RG7597) m. epithelial tumors (RG7667) CMV mglu5 NAM (RG7090) depression obinutuzumab (GA101) CLL cobimetinib (MEK inh) (RG7421) combo Zelboraf met melanoma oral octreotide (RG3806) acromegaly ocrelizumab (RG1594) PPMS and RMS bitopertin (RG1678) schizophrenia# glypican-3 MAb (RG7686) liver cancer ALK inhibitor (RG7853) NSCLC setrobuvir (RG7790) HCV inclacumab (RG1512) ACS/CVD and beyond crenezumab (RG7412) Alzheimer s lampalizumab anti-factor D Fab (RG7417) geographic atrophy Unless stated otherwise, submissions are planned to occur in US and EU. indicates a submission which has occurred with regulatory action pending # negative symptoms and sub-optimal control Oncology Immunology Infectious Diseases CardioMetabolism Neuroscience Ophthalmology NME 63 Status as of June 30, 2013

65 Submissions of additional indications for existing products Projects currently in phase 2 and 3 Avastin rel. ovarian ca. Pt-resist Avastin NSCLC adj Avastin rel. ovarian ca. Pt-sens.(US) Perjeta HER2-pos. EBC Avastin ovarian cancer 1 st line (US) Avastin glioblastoma 1 st line (EU) Perjeta HER2-pos. mbc 2 nd line Perjeta HER2-pos. gastric cancer Avastin glioblastoma 1 st line (US) Kadcyla (T-DM1) HER2-pos. early BC * Perjeta HER2-pos BC neoadjuvant Zelboraf met melanoma adj. Tarceva NSCLC adj (EU) Avastin cervical cancer Avastin HER2-neg BC adj Zelboraf papillary thyroid cancer Actemra early RA Avastin HER2-pos. BC adj Kadcyla (T-DM1) HER2-pos. mbc 1st line Actemra giant cell arteritis Xolair (US) chronic idiopathic urticaria Tarceva NSCLC adj (US) Kadcyla (T-DM1) HER2-pos. gastric cancer Actemra systemic sclerosis and beyond indicates submission to Health Authorities has occurred. * Filing in the EU under discussion Unless stated otherwise, submissions are planned to occur in US and EU. Oncology Immunology Infectious diseases CardioMetabolism Neuroscience Ophthalmology 64 Status as of June 30, 2013

66 Major granted and pending approvals 2013 Approved Pending approvals Tarceva NSCLC EGFR mut 1 st line May 2013 US Kadcyla T-DM1 HER2-pos pretreated mbc Feb 2013 Avastin mcrc TML Jan 2013 Actemra polyarticular JIA Apr 2013 Lucentis AMD 0.5 mg PRN Feb 2013 obinutuzumab CLL Filed Apr 2013 Perjeta HER2-pos BC neoadjuvant Filed Apr 2013 Actemra RA sc formulation Filed Dec 2012 EU Perjeta HER2-pos mbc 1 st line Mar 2013 MabThera ANCA associated vasculitis Apr 2013 Kadcyla T-DM1) HER2-pos advanced mbc Filed Aug 2012 Actemra RA sc formulation Filed Dec 2012 Erivedge adv. basal cell carcinoma Jul 2013 Actemra polyarticularjia May 2013 Herceptin Her2-pos BC sc formulation Filed Mar 2012 MabThera NHL sc formulation Filed Dec 2012 Avastin glioblastoma 1 st line Filed Mar 2013 Oncology Immunology Infectious Diseases CardioMetabolism Status as of June 30, 2013 Neuroscience Ophthalmology NME obinutuzumab CLL Filed Apr

67 Major Chugai granted and pending approvals 2013 Approved Pending approvals Avastin malignant glioma Jun 2013 Actemra sc formulation Mar 2013 Boniva/Bonviva osteoporosis Jun 2013 Avastin ovarian cancer Filed Oct 2012 Perjeta HER2-pos mbc Jun 2013 Kadcyla HER2-pos mbc Filed Jan 2013 Tarceva NSCLC EGFR mut 1 st line Jun 2013 Oncology Immunology Infectious Diseases CardioMetabolism Neuroscience Ophthalmology NME Status as of June 30,

68 Doing now what patients need next 67