Committed to innovation and growth Alan Hippe, CFO Roche Group New York , February 2013 Roche strategy: Focused on medically differentiated therapies Regulators: Pharma Dia Optimised benefit / risk ratio Payors: Focus Optimised benefit / cost ratio MedTech Premium for innovation OTC Generics Differentiation 2 Roche: Operating profit and margin continuously increased Group core operating profit and margin 37.7% 34.9% 35.6% % of sales 33.0% 33.2% +11%1 17.16 16.27 16.59 15.07 15.15 CHF bn 2008 2009 2010 2011 2012 3 1 At CER=Constant Exchange Rates Roche: Cash flow and margin continuously increased Group operating free cash flow and margin % of sales 33.8% 32.1% 32.3% 29.8% 27.1% +10%1 15.7 15.4 14.1 13.7 12.4 CHF bn 2008 2009 2010 2011 2012 4 1 At CER=Constant Exchange Rates R&D productivity differs substantially among players Average annual 1 NME peak sales (2001-10) $ 710 m Peak Sales 4 x US$ bn (per $1 bn R&D) Roche $ 165 m Peak Sales (per $1 bn R&D) Average annual R&D investment (1997-2006)1 US$ bn 1 Peak sales and R&D calculated pro forma to account for major M&A 5 Source: EvaluatePharma; BCG analysis; Roche analysis Roche: R&D well balanced from a risk & disease point of view 2012 Roche budget Oncology Metabolism Inflammation CNS Virology 0% 5% 10% 15% 20% 25% 30% Industry average probability of success – Phase 0 to Registration 6 Source: Bernstein Equity Research, Tufts University and Roche analysis Changing the standard of care in HER2 Securing future growth by improving the standard of care Biosimilars launch (EU) 2nd line Xeloda + lapatinib T-DM1 (EMILIA) mBC Herceptin Herceptin & Perjeta + 1st line T-DM1 & Perjeta (MARIANNE) mBC + chemo chemo (CLEOPATRA) Adjuvant Herceptin Herceptin subcutaneous + chemo Herceptin & Perjeta T-DM1 & Perjeta BC + chemo (HannaH) + chemo (APHINITY) + chemo 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Filing timelines Established standard of care Potential new standard of care Potential future standard of care 7 Changing the standard of care in hematology Different mechanisms of action Potential filing of first indication 2012 2014 2016 2018 2020 MabThera Rituxan* GA 101 Bcl-2 Anti-CD22 ADC Anti-CD79b ADC 8 * Patent expiry in the US: 2018 Best-in-class pipeline 71 NMEs supporting long-term growth Phase I Phase II Phase III (36 NMEs) (23 NMEs) (9 NMEs) MDM2 ant solid & hem tumors Bcl-2 inh CLL and NHL EGFR MAb solid tumors onartuzumab (MetMAb) solid tumors HER3 MAb solid tumors ChK1 inh solid tum & lymphoma PI3K inh solid tumors obinutuzumab (GA101) hem. tumors CSF-1R MAb solid tumors PI3K inh solid tumors PI3K/mTOR inh solid & hem tumors MEK inh combo Zelboraf m. melanoma CIF/MEK inh solid tumors ADC metastatic melanoma EGFL7 MAb solid tumors lebrikizumab severe asthma Tweak MAb oncology PI3k inh glioblastoma 2L CD22 ADC heme tumors aleglitazar CV risk reduction in T2D CD44 MAb solid tumors ChK1 inh(2) solid tumors CD79b ADC heme tumors tofogliflozin (SGLT2) type 2 diabetes Ang2-VEGF MAb oncoloy ALK inhibitor NSCLC HER3/EGFR m. epithelial tumors ocrelizumab MS Raf & MEK dual inh solid tumors PI3K inh solid tumors glypican-3 MAb liver cancer bitopertin schizophrenia MEK inh solid tumors WT-1 peptide cancer vaccine etrolizumab ulcerative colitis arbaclofen fragile X syndrome (FXS) IL-17 MAb autoimmune diseases MDM2 ant solid & hem tumors rontalizumab SLE IL-6 MAb RA AKT inhibitor solid tumors quilizumab (M1 prime Mab) asthma PD-L1 MAb solid tumors CIM331RA atopic dermatitis mericitabine HCV Registration Steap 1ADC prostate ca. TLR7 agonist HBV danoprevir HCV (3 NMEs) ADC ovarian ca. GIP/GLP-1 dual ago type 2 diabetes setrobuvir HCV Perjeta (pertuzumab)* HER2+ mBC 1L ADC heme tumors GABRA5 NAM cogn. disorders - CMV Erivedge* advanced BCC ADC multiple myeloma V1 receptor antag autism inclaumab (P selectin Mab) ACS/CVD T-DM1 HER2+ mBC ADC oncology BACE inh Alzheimer’s PCSK9 MAb metabolic diseases PDE inh schizophrenia gantenerumab Alzheimer’s ACE910 hemophilia A MAO-B inh Alzheimer’s mGluR2 antag depression mGluR5 antag TRD crenezumab Alzheimer‘s anti-factor D Fab geograph. atrophy Oncology CardioMetabolism Immunology Neuroscience Virology Ophthalmology Others 9 As of December 31 2012; * Approved in US, filed in EU 2012: US and Emerging markets driving growth Pharma Growth vs. market Diagnostics Growth vs. market Asia- Asia 15% 15% Pacific Latin 11% Latin America America 15% CEMAI 8% North US 7% 3% America Japan 2% Japan 7% WE-2% EMEA -1% All growth rates at CER=Constant Exchange Rates; CEMAI=Central and Eastern Europe, Middle East, Africa, Central Asia, Indian 10 Subcontinent; EMEA=Europe, Middle East and Africa. Source: IMS, company and independent estimates Summary: Focus on innovation and growth Strategic focus on innovation and driving Personalised 1 Healthcare Strong growth in US and Emerging Markets; 2 innovative access models 3 Leading product pipeline providing value for the future 11 We Innovate Healthcare .