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Irp180426-A.Pdf Roche Q1 2018 results Basel, 26 April 2018 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. 3 Group Severin Schwan Chief Executive Officer Q1 2018: Strong sales growth in both divisions 2018 2017 Change in % CHFbn CHFbn CHF CER Pharmaceuticals Division 10.7 10.2 5 7 Diagnostics Division 2.9 2.8 5 5 Roche Group 13.6 12.9 5 6 CER=Constant Exchange Rates 5 Q1 2018: Sales growth for the seventh consecutive year 10% 8% 8% 7% 7% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 5% 5% 5% 5% 4% 4% 4% 4% 4% 4% 4% 3% 3% 2% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 All growth rates at Constant Exchange Rates (CER) 6 Q1 2018: Strong sales growth in US and International CHFbn 7 +14% 6 +8% 5 4 +6% -5% Diagnostics 3 +15% Pharma +9% -1% 2 0% +5% -7% 1 -8% 0% 0 Japan International Europe US All growth rates at Constant Exchange Rates (CER) 7 Roche significantly advancing patient care, BTD’s reflecting the quality of our research Phase duration (years) No = 7.5 Fast track = 5.8 Accelerated review = 3.8 Breakthrough therapy = 3.6 8 2018: New products with annualized sales of >CHF 8bn* ~80% of growth driven by new products * Venclexta sales are booked by partner AbbVie. 9 Replace and extend the business Through continuously improving standard of care Entering new Replace existing businesses Achievements Q1 2018 franchises Gazyva, Perjeta: Launched in eBC in US Venclexta, MabThera MS: polatuzumab vedotin, Ocrevus Gazyva: Launched in FL in US/EU Sub Cut Hemlibra: Launched in inh. patients in US/EU; BTD in non-inh. Perjeta, Herceptin Kadcyla, Tecentriq: IMpower150 with OS benefit Sub Cut Hemophilia: Venclexta: Launched in 17p del; Filed in CLL R/R Hemlibra Tecentriq, Avastin baloxavir: Filing initiated in US entrectinib entrectinib: Acquisition of Ignyta completed VA2, Lucentis port delivery CNS: VA2: Strong Ph II data in DME SMA, Autism, Tamiflu baloxavir (Cap Endo) Huntington’s VA2=anti-VEGF/anti-angiopoietin-2 bispecific antibody; MS=multiple sclerosis; SMA=spinal muscular atrophy; eBC=early breast cancer; FL=follicular lymphoma; BTD=Breakthrough 10 Therapy Designation; CLL R/R=relapsed/refractory (R/R) chronic lymphocytic leukemia; DME=diabetic macular edema Record number of NMEs at pivotal stage Q1 entrants: Anti-VEGF/Ang2 biMAb, entrectinib, baloxavir marboxil Oncology Ophthalmology Neuroscience Immunology Infectious Disease NME=new molecular entities; For details on the indications and line extensions please consult the pipeline appendix. Cap Endonuclease inhibitor (baloxavir marboxil) 11 2018 outlook raised From “stable to low single digit” to “low single digit” Group sales growth1 • Low-single digit • Broadly in line with sales, excl. US tax reform benefit Core EPS growth1 • High-single digit, incl. US tax reform benefit Dividend outlook • Further increase dividend in Swiss francs 1 Sales growth at Constant Exchange Rates (CER) 12 Pharmaceuticals Division Daniel O’Day CEO Roche Pharmaceuticals 13 Q1 2018 performance Innovation Outlook 14 Q1 2018: Pharma sales Accelerated growth in US due to new products 2018 2017 Change in % CHFm CHFm CHF CER Pharmaceuticals Division 10,672 10,177 5 7 United States 5,516 5,070 9 15 Europe 2,287 2,273 1 -7 Japan 851 856 -1 0 International 2,018 1,978 2 5 CER=Constant Exchange Rates 15 Q1 2018: New products with strong momentum, out growing biosimilar onset Absolute values and growth rates at Constant Exchange Rates (CER) 16 Q1 2018: Oncology sales stable YoY CER growth Perjeta • Perjeta: Strong growth in all regions; US momentum due to early APHINITY approval HER2 Herceptin +6% • Kadcyla: Growth driven by International Kadcyla • EU: Decline largely due to price cut in France Avastin -2% • US/EU: 1L lung cancer shares stable after CIT entry Gazyva/Gazyvaro Hematology MabThera/Rituxan • US/EU: Good initial uptake of Gazyva in 1L FL in the early launch countries (Oncology) -7% Tarceva -32% • Increased competition • EU: Launch in lung (2/3L) and bladder (2L and 1L cisplatin ineligible) ongoing Tecentriq +29% • US: 2L lung cancer and 1L cisplatin ineligible bladder shares stable • US: 1L new patient market share of >50% achieved following 1L approval in Q4 Alecensa +81% • EU: Strong 1L launch in key markets Cotellic Cotellic + -6% • EU: Increasing competition from CIT Zelboraf CHFbn 0 1 2 3 Q1 2018 Oncology sales: CHF 6.4bn (CER growth 0%); All growth rates at Constant Exchange Rates (CER); CIT=cancer immunotherapy; FL=follicular lymphoma 17 Her2 franchise: Growth driven by Perjeta CHFm YoY CER growth 3,000 +6% +6% Her2 franchise Q1 2018 2,500 +9% +23% • Perjeta US (+18%): Accelerated growth driven by eBC following approval in the adjuvant setting (APHINITY) 2,000 • Perjeta in eBC on NCCN, St. Gallen, and AGO (Germany) 1,500 guidelines Outlook 2018 1,000 • US: Continued Perjeta uptake in eBC 500 • EU: Approval in adjuvant BC (APHINITY) • EU: Market entry of Herceptin biosimilars 0 Q1 15 Q1 16 Q1 17 Q1 18 Herceptin Perjeta Kadcyla CER=Constant Exchange Rates; eBC=early breast cancer; NCCN=National Comprehensive Cancer Network; AGO=Arbeitsgemeinschaft Gynäkologische Onkologie 18 Hematology: Entering the rejuvenation phase CHFm YoY CER growth Hematology Q1 2018 2,000 CD20 franchise • MabThera (onc) US (+2%): Stable volumes in all indications +4% +5% +3% • MabThera (onc) EU (-43%): Biosimilar roll-out ongoing 1,500 -7% • Gazyva (+27%): Growth driven by 1L FL early launches Venclexta* 1,000 • Venclexta sales reached USD 59m (+179%) with ~40% patient share reached in R/R CLL with 17p deletion 500 Outlook 2018 • US: first biosimilar entry in H2 expected • US/EU approval Venclexta + Rituxan in R/R CLL (MURANO) 0 • Ph II data for Polatuzumab vedotin + BR in R/R DLBCL to be Q1 15 Q1 16 Q1 17 Q1 18 shared with health authorities MabThera/Rituxan (Onc) Gazyva/Gazyvaro CER=Constant Exchange Rates; FL=follicular lymphoma; CLL=chronic lymphoid leukemia; BR=bendamustine+Rituxan; DLBCL=diffuse large B-cell lymphoma; * Venclexta sales are 19 booked by partner AbbVie. Alecensa: US market leadership in 1L ALK+ NSCLC achieved CHFm YoY CER growth Alecensa Q1 2018 150 • US: New patient share of >50% in first quarter of launch +81% 125 • Launch supported by FMI`s NGS-based companion diagnostic (FoundationOne CDx) and approval of the 100 Ventana companion diagnostic 75 +124% • EU: Strong launch in key markets 50 +161% Outlook 2018 25 • Continued 1L momentum 0 • Updated mPFS data from Ph III study (ALEX) comparing Q1 15 Q1 16 Q1 17 Q1 18 Alecensa vs crizotinib to be presented at ASCO US Europe International Japan • Ph III adjuvant study (ALINA) initiated CER=Constant Exchange Rates; FMI=Foundation Medicine; NGS=next generation sequencing 20 Immunology: Annualized sales of around CHF 8bn CHFm YoY CER growth Immunology Q1 2018 +4% 2,000 +11% Esbriet (+13%) +16% 1,600 • Penetration in mild to moderate patient segment increasing +20% Xolair (+7%) 1,200 • Growth driven by pediatric asthma, allergic asthma and CIU 800 Actemra (+13%) • Launch in giant cell arteritis ongoing 400 • Auto-injector approved in the EU and Australia 0 Q1 15 Q1 16 Q1 17 Q1 18 Outlook 2018 MabThera/Rituxan (RA) Actemra IV Actemra SC Xolair • Strong growth expected with the exception of MabThera CellCept Pulmozyme Esbriet Other CER=Constant Exchange Rates; CIU=chronic idiopathic urticaria 21 Ocrevus: Strong EU launch; ~7% US market share after 3 quarters CHFm 600 Ocrevus Q1 2018 • Strong launches in EU and International 500 • US growing due to increasing number of returning patients 400 and new patients • RMS: 30% treatment naive/previously discontinued vs. 70% 300 switches from all other approved medications 200 Outlook 2018 100 • Continued launches in EU and International 0 • Further increasing US market share with earlier use Q2 17 Q3 17 Q4 17 Q1 18 US Europe International RMS=relapsing forms of multiple sclerosis 22 2018: New products with annualized sales of >CHF 8bn* ~80% of growth driven by new products * Venclexta sales are booked by partner AbbVie.
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