PROSPECTUS Roche Holding AG

PROSPECTUS dated 29 March 2018 relating to the offer of 702,562,700 non-voting equity securities (“Genussscheine”) of Roche Holding AG (International Securities Identification Number (“ISIN”) CH0012032048) and the right to purchase such Genussscheine under the Roche Genussschein Purchase Plan – Roche Connect (the “Connect Plan”) to certain employees of Roche Holding AG (the “Company” or “Roche”) and its subsidiaries (together with Roche, the “Group” or the “Roche Group”) in certain member states of the European Economic Area (“EEA”). See “Risk Factors” in Part 2 of this Prospectus for a discussion of certain risks that should be considered in connection with an investment in the Genussscheine. This Prospectus has been prepared following the short-form disclosure regime for employee share scheme prospectuses in accordance with Article 23.4 of the Prospectus Regulation 809/2004/EC, as amended, as outlined by the European Securities and Markets Authority (“ESMA”) under item 71 of ESMA's 27th updated version – October 2017, Questions and Answers Prospectuses, Ref. ESMA31-62-780, dated 20 October 2017. CONTENTS CONTENTS ........................................................................................................................ 2 PART 1 SUMMARY ....................................................................................................... 4 SECTION A – INTRODUCTION AND WARNINGS ...................................................... 4 SECTION B – ISSUER ....................................................................................................... 4 SECTION C – SECURITIES ............................................................................................. 7 SECTION D – RISKS ........................................................................................................ 8 SECTION E – OFFER ...................................................................................................... 10 GERMAN TRANSLATION OF THE SUMMARY / ZUSAMMENFASSUNG ....................... 13 TEIL 1 ZUSAMMENFASSUNG ....................................................................................... 13 ABSCHNITT A – EINLEITUNG UND WARNHINWEISE .......................................... 13 ABSCHNITT B – EMITTENT ........................................................................................ 13 ABSCHNITT C – WERTPAPIERE ................................................................................. 17 ABSCHNITT D – RISIKEN ............................................................................................. 18 ABSCHNITT E – ANGEBOT .......................................................................................... 20 PART 2 RISK FACTORS .............................................................................................. 24 PART 3 THE BUSINESS ............................................................................................... 33 1. OVERVIEW .............................................................................................................. 33 2. STRATEGY ............................................................................................................... 33 3. SELECTED FINANCIAL INFORMATION ........................................................... 36 4. CURRENT TRADING AND PROSPECTS ............................................................. 37 PART 4 ADMINISTRATIVE AND MANAGEMENT BODIES ...................................... 39 1. DIRECTORS AND EXECUTIVE COMMITTEE .................................................. 39 2. BIOGRAPHIES OF THE DIRECTORS AND MEMBERS OF THE EXECUTIVE COMMITTEE AND THE ENLARGED EXECUTIVE COMMITTEE ................ 41 3. CONFLICTS OF INTEREST ................................................................................... 57 4. TRADING RESTRICTIONS .................................................................................... 57 PART 5 CAPITALISATION AND INDEBTEDNESS ..................................................... 58 PART 6 ADDITIONAL INFORMATION ...................................................................... 60 1. INCORPORATION .................................................................................................. 60 2. RESPONSIBILITY ................................................................................................... 60 3. SUMMARY OF CERTAIN PROVISIONS OF THE ARTICLES OF INCORPORATION AND BY LAWS ...................................................................... 60 4. MANDATORY BID RULES .................................................................................... 61 5. DIRECTORS’ AND MEMBERS’ OF THE EXECUTIVE COMMITTEE INTERESTS .............................................................................................................. 62 2 6. DIRECTORS’ AND MEMBERS OF THE EXECUTIVE COMMITTEES’ TERMS OF EMPLOYMENT ................................................................................................. 65 7. DIVIDENDS .............................................................................................................. 74 8. TAXATION ............................................................................................................... 74 9. STATUTORY AUDITORS....................................................................................... 75 10. WORKING CAPITAL .............................................................................................. 75 11. SIGNIFICANT CHANGES ...................................................................................... 76 12. EXPENSES ................................................................................................................ 76 13. PASSPORTING ........................................................................................................ 76 14. SELLING RESTRICTIONS ..................................................................................... 76 15. INFORMATION NOT CONTAINED IN THIS PROSPECTUS ............................ 76 16. STATEMENTS REGARDING PRODUCT SALES AND COMPETITIVE POSITION ................................................................................................................. 76 17. LEGAL AND ARBITRATION PROCEEDINGS ................................................... 77 18. THE CONNECT PLAN ............................................................................................ 80 19. PAYING AND DEPOSITARY AGENT AND PLAN ADMINISTRATOR ........... 82 20. EQUITY COMPENSATION PLANS ...................................................................... 82 21. INFORMATION REGARDING FORWARD-LOOKING STATEMENTS .......... 86 22. DOCUMENTS AVAILABLE FOR INSPECTION ................................................. 86 PART 7 DEFINITIONS ................................................................................................. 87 ANNEX A CONNECT PLAN REGULATIONS ............................................................ 88 ANNEX B TERMS AND CONDITIONS OF THE GENUSSSCHEINE..................... 118 3 PART 1 SUMMARY Summaries are made up of disclosure requirements known as “Elements”. These elements are numbered in Sections A – E (A.1 – E.7). This summary contains all the Elements required to be included in a summary for this type of securities and Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in the summary because of the type of securities and Issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element is included in the summary with the mention of “not applicable”. Section A – Introduction and warnings Element Description of Element Disclosure requirement A.1 Warnings · This summary should be read as an introduction to this prospectus (the “Prospectus”). · Any decision to invest in the Genussscheine should be based on consideration of this Prospectus as a whole by the investor. · Where a claim relating to the information contained in this Prospectus is brought before a court, the plaintiff investor might, under the national legislation of the Member States of the European Economic Area (EEA), have to bear the costs of translating this Prospectus before the legal proceedings are initiated. · Roche Holding AG, Basel, Switzerland (hereinafter “Roche” or the “Company” and together with its subsidiaries the “Group” or the “Roche Group”) assumes responsibility for the contents of this summary (including any translation thereof) pursuant to Section 5(2b) No. 4 of the German Securities Prospectus Act (Wertpapier- prospektgesetz). With regard to the content of this summary, including its translations, civil liability attaches to Roche Holding AG who, as set out above, have assumed responsibility for the summary, including any translation thereof, or to those persons who are responsible for the issuance thereof, but only if this summary is misleading, inaccurate or inconsistent when read together with the other parts of this Prospectus or it does not provide, when read together with the other parts of this Prospectus, all necessary key information. A.2 Information regarding Not applicable. Consent regarding the use of the Prospectus for a the subsequent use of subsequent resale or placement of the Genussscheine has not been the prospectus granted. Section B – Issuer Element Description of Element Disclosure requirement B.1 Legal and commercial The legal name of the Company is Roche Holding AG. Its commercial name

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