Experience patients telling their stories. Scan the marked images with the Xtend app to watch the videos. Annual Report 2019 Experience Adeline telling her story. Scan the image with the Xtend app to watch the video. Every day Developing cures for patients—as a science- driven organisation we strive towards converting today’s knowledge into tomorrow’s therapies. We are pushing boundaries. Millions of people, like Adeline, have hepatitis B and we are developing medicines to help them. Everywhere Bringing our products to patients—we are committed to bringing our medicines and tests rapidly and sustainably to those who need them. We are open to new ideas. Working in collaboration with healthcare systems and our partners is key to resolving critical access barriers to therapies. Everyone Benefiting people in need—motivated and skilled employees collaborate across cultures and locations to develop life-saving products. We share one purpose. An abiding dedication to high quality ensures that doctors have the backing of pioneering science to treat their patients. Doing now what patients need next We believe it’s urgent to deliver medical solutions right now—even as we develop innovations for the future. We are passionate about transforming patients’ lives. We are courageous in both decision and action. And we believe that good business means a better world. That is why we come to work each day. We commit ourselves to scientific rigour, unassailable ethics, and access to medical innovations for all. We do this today to build a better tomorrow. We are proud of who we are, what we do, and how we do it. We are many, working as one across functions, across companies, and across the world. We are Roche. “I feel that I have been able to strengthen the patient’s position as a stakeholder.” Ike de Rooij-van Haaren, Consultant, Oman I moved to Basel five years ago with my husband and numbers and always asked what it meant for three sons. Just a few months later I was diagnosed individual patients such as myself. with HER2-positive breast cancer. Fortunately, I received timely treatment with two of Roche’s breast The project itself was meant to last three months. cancer medicines in my native Holland. For that, I But the team realised they could benefit more from had to leave my young boys and husband behind my journey and real-life experiences as a patient. here in what was a new place for them. Therefore, I signed a patient consultant contract and continued to work with Roche. It has been more I made up my mind while still undergoing treatment than three years now. that I wanted to give something back to Roche. The company had kindly allowed me to participate in I now live in the Middle East and this sometimes a study of one of its medicines and this inspired me poses a logistical challenge. Technology helps, but I greatly. I mentioned it to a friend who worked at try to attend meetings in person when possible. I work Roche and he came back to me with some details with the broader HER2 franchise team these days about a project aimed at putting a patient in one of and over the years have been involved in prelaunch, the brand teams to see what effect that would have launch and postlaunch activities. My role is to give and if it would change the decision-making within the patient perspective at any stage of the medicine’s the team. life cycle. I am also a member of a committee set up by Roche, where, along with other patients, we review I was nervous at first, but decided to take the plunge. topics that teams request advice on, such as patient I realised that I just had to be myself and share my information materials and clinical trials. experiences. It took a couple of meetings with the brand team to get used to each other. The team I got I feel that I have been able to strengthen the patient’s to work with was working on the same breast cancer position as a stakeholder. It has been difficult to medicine that I had been treated with. They were engage with patients at times and this makes it hard curious to hear my experience and therefore I felt to understand their real needs. Now, with efforts such confident to share my opinions. From the beginning as the one I am involved in, business teams are really I could see the impact of having the actual patient’s looking at ways to give this important stakeholder a voice in the room. I was never interested in the stronger voice in the work they do. Experience Ike telling her story. Scan the images with the Xtend app to watch the video. Innovation—it’s in our DNA We have always worked across disciplines and geographies to drive scientific discovery and redefine what is possible to improve patients’ lives. We are working on understanding how diseases differ also the world leader in the in vitro diagnostics down to molecular level. So we can develop new business. This track record allows us to build lasting tests and medicines that prevent, diagnose and treat and meaningful partnerships across the world with diseases, and bring them to the patients who need research academia and public healthcare institutions. them. With our combined strengths in diagnostics and pharmaceuticals, our personalised healthcare The founding families continue to hold the majority strategy aims to fit the right treatment to the right voting stake in the company. This stability allows for patient. a tradition of sustainable thinking, so we can learn from setbacks and focus on lasting value for patients As the world’s largest biotech company, we develop and society. We remain dedicated to the highest breakthrough medicines, improving the standard standards of quality, safety and integrity. Our legacy of care across oncology, immunology, infectious is based on respect for the individual as well as the diseases, ophthalmology and neuroscience. We are communities and the world we live in. Experience more about Roche. Scan the world map with the Xtend app to watch the video. Key figures Highlights CHF 61,466 million Driving growth Group sales +9%* With CHF 5.4 billion incremental sales, medicines launched since 2012 drive growth and rejuvenation of our product portfolio CHF 22,479 million Read more on page 24 Core operating profit +11% Treating rare cancer Rozlytrek approved to treat rare form of lung CHF 9.00 cancer that occurs in 1–2% of patients only Dividend Read more on page 35 CHF 11,696 million Launching cobas pro R & D core investments +6% Next-generation integrated Serum Work Area solutions improve efficiency and shorten results delivery 37 million patients Read more on page 26 treated with Roche medicines Contributing to sustainability Roche ranked amongst most sustainable 32 Roche medicines healthcare companies in the Dow Jones on the WHO Model List of Essential Medicines Sustainability Indices 97,735 employees** worldwide North America Europe 26,176 employees 42,112 employees Genentech, South San Francisco, US ( ) Basel, Kaiseraugst and Rotkreuz, Switzerland ( ) Roche Diagnostics, Indianapolis, US ( ) Mannheim and Penzberg, Germany ( ) Latin America Asia 4,682 employees 22,802 employees Chugai, Tokyo, Japan ( ) Africa Shanghai and Suzhou, China ( ) 1,258 employees Australia/New Zealand 705 employees 29 23 research and development sites in manufacturing sites in Pharmaceuticals Pharmaceuticals and Diagnostics worldwide and Diagnostics worldwide Roche Group headquarters Manufacturing sites in Pharmaceuticals and Diagnostics Largest sites based on number of employees Sales sites in Pharmaceuticals and Diagnostics Research and development sites in Pharmaceuticals and Diagnostics * All growth rates in this report are at constant exchange rates (CER; average 2018). | ** Number of employees expressed in full-time equivalents, on 31.12.2019 12 Overview 76 Environment 22 Business performance 86 Community engagement 42 Science and innovation 92 Integrity in business 58 Access to healthcare 102 Corporate Governance 68 Our people 120 Remuneration Report 12 Material topic covered in this chapter Cybersecurity Our reporting approach Roche is committed to transparent reporting and we endeavour to drive our economic, social and environmental performance with the same diligence as our financial performance. Reporting scope and boundaries all material risks and opportunities, is discussed Our financial and non- financial reporting consists annually with the Corporate Executive Committee of the Annual Report, the Finance Report and the and reviewed by the Audit Committee of the Board online report. It contains the annual financial of Directors and by the Board of Directors. The statements, consolidated financial statements and effectiveness of the Group Risk Management Process non- financial performance indicators. It covers is regularly monitored by the Group Risk Advisory all regions and divisions of the Roche Group from team, and the overall process is reviewed externally 1 January to 31 December 2019. The financial when appropriate. Risk management is embedded at reporting scope is defined and outlined in our all levels of the Group. Our Pharmaceuticals and Finance Report, and there have been no significant Diagnostics Divisions and global functions conduct changes in scope in 2019 compared to 2018. a formal risk assessment process at least once a year and must develop mitigation plans for their most GRI standards and materiality material risks. We have followed the GRI G4 guidelines (Global Reporting Initiative) since 2014, and have transitioned Read more in ‘Corporate Governance’ on page 102 to the GRI Standards in 2017. By using the GRI guidelines, we disclose the most critical impacts of We also identify long-term business sustainability our activities on the environment, society and the trends with associated risks and opportunities on economy.