Roche. Half year results July 21, 2011 London

Transcription

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2 Roche Half year results 2011 July 21, 2011 London 2

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 Strong performance in the first half of 2011 Sales on track for full year guidance Group and Pharma: low-single digit sales growth 1,2 Diagnostics: above market sales growth Continuous productivity improvements On track to deliver CHF 1.8 bn OE* savings in 2011 (CHF 2.4 bn in 2012) Core operating margin and cash flow further increased Core EPS +10% 1 Currency Impact Reported results significantly impacted by currency fluctuations Underlying exposure mitigated by majority of cost base outside Switzerland Outlook improved Core EPS growth target increased to around 10% 1 Grow dividend in-line with Core EPS; at least last year s dividend in CHF 1 local currency, 2 excluding Tamiflu, *Operational Excellence 1

6 HY 2011: Group sales Supporting full-year guidance, strong currency impact change in % Excluding CHF m CHF m CHF local Tamiflu 1 Pharmaceuticals Division 19,386 16, Diagnostics Division 5,250 4, Roche Group 24,636 21, local currency 6

7 Continuous growth in operating profit and margin Group core operating profit (CHF bn) and margin 38.1% 34.7% 35.0% 37.2% +5% in LC local currency HY 2008 HY 2009 HY 2010 HY

8 Increasing operating free cash flow and margin Group operating free cash flow (CHF bn) and margin 31.6% % 28.2% % +27% in LC local currency HY 2008 HY 2009 HY 2010 HY

9 HY 2011: +10% Core EPS 1 growth +10% in LC 1 CHF HY 2008 HY 2009 HY 2010 HY local currency 9

10 P&L structure reflecting innovation based strategy Peer group core operating profit margin 2010 Eli Lilly Roche Merck Novartis Sanofi Pfizer GSK Astra JNJ GSK JNJ Eli Lilly Novartis Astra Pfizer Merck Sanofi Roche R&D % sales 22% 19% 18% 16% 14% 14% 14% 13% 11% M&D+G&A % sales 33% 32% 32% 31% 29% 29% 29% 25% 23% FY 2010 figures; restated to a core basis based on publicly available information Astra Sanofi Pfizer Roche Merck GSK Eli Lilly Novartis JNJ Core operating profit margin % sales 28% 27% 31% 31% 30% 35% 1. Pfizer: Non-core items in CoS 2. Eli Lilly: 8%p. lower CoS ratio vs. Roche. Not feasible to judge if definition of Lilly s CoS same as Roche s 3. JNJ: No adjustments feasible as no details are disclosed. 38% 38% 44% 10

11 R&D productivity Excellence in science key lever to reduce attrition Industry success rate Research Phase 0 Phase 1 Phase 2 Phase 3 Registration Launch Understanding of disease biology Probability of success - 64% 48% 25% 67% 83% 4% Leveraging Personalized Healthcare - stratify patient population early on Industry: 4% Roche: 9% Rigorous decision making transition only most promising projects Major decision points Source: Industry success rates - Linda Martin, KMR, Bernstein R&D conference 2011 Roche publically available data, BCG analysis 11

12 Key levers of R&D productivity Further drive efficiency Number of NMEs in late stage 2 ocrelizumab Actemra 4 taspoglutide dalcetrapib ocrelizumab pertuzumab 10 Glycine reuptake inh aleglitazar taspoglutide dalcetrapib ocrelizumab Hedgehog inh BRAF inhibitor T-DM1 GA101 (CLL) pertuzumab HCV pol inh 1 ocrelizumab MS Glycine reuptake inh aleglitazar dalcetrapib lebrikizumab 1 MetMAb 1 Hedgehog inh BRAF inhibitor T-DM1 GA101 (CLL, NHL) pertuzumab HY 2011 Keep R&D expenses at current level in spite of expanding pipeline Medical Affairs Innovative trial design: Better - selection of endpoints Faster - drug profiling at early stage Cheaper reduce trial complexity R&D efficiency improvement Non-strategic activities: move to more cost effective sites/outsource Consolidate trial activities to fewer centers Procurement savings 1 LIP decision made, phase III start pending 12

13 CHF bn Efficiency improvements and long-term growth Track-record Outlook Core operating profit and margin 38.1% 34.7% 35.0% 37.2% Profitability FY 2011 Target increased to around 10% Core EPS growth * HY 2008 HY 2009 HY 2010 HY 2011 Number of NMEs 2 ocrelizumab Actemra 4 taspoglutide dalcetrapib ocrelizumab pertuzumab 10 Glycine reuptake inh aleglitazar taspoglutide dalcetrapib ocrelizumab Hedgehog inh BRAF inhibitor T-DM1 GA101 (CLL) pertuzumab LIP decision made, phase III start pending 12 HCV pol inh 1 ocrelizumab MS Glycine reuptake inh aleglitazar dalcetrapib lebrikizumab 1 MetMAb 1 Hedgehog inh BRAF inhibitor T-DM1 GA101 (CLL, NHL) pertuzumab 2010 Growth Potential NMEs filings in 2011 Zelboraf (metastatic melanoma) pertuzumab (1 st l. HER2+ mbc) vismodegib (advanced BCC) *in local currency 13

14 Increased outlook for 2011 Good first half due to strong business performance Sales growth (in LC) Genentech synergies Operational Excellence savings Core EPS growth target (in LC) Dividend outlook Group & Pharma (excl. Tamiflu): low single-digit Diagnostics: significantly above market : CHF 1.0 bn* 2011 : CHF 1.8 bn : CHF 2.4 bn Increased to around 10% Grow in-line with Core EPS; maintain at least last year s dividend in CHF Barring unforeseen events; LC=Local Currency; * vs. 2010: CHF 0.8 bn 14

15 Pharmaceuticals Division Pascal Soriot COO Roche Pharmaceuticals 15

16 HY 2011: Pharma sales on track to meet the guidance change in % Excluding CHF m CHF m CHF local Tamiflu 1 Pharmaceuticals Division 19,386 16, United States 7,372 6, Western Europe 5,044 4, Japan 2,061 1, International 4,909 4, Quarterly growth rates % in LC vs. prior year Q1 Q2 Q3 Q4 Q1 Q2 Pharmaceuticals Division excl. Tamiflu local currency 16

17 HY 2011: Pharma sales stable United States 37% Pharma sales, +2% 1 Actemra and Lucentis up Lower sales of Avastin in mbc HCV patients warehoused Western Europe 26% Pharma sales, -4% 1 Actemra: continued good uptake Austerity measures Lower sales of Avastin in mbc Japan 11% Pharma sales, -1% 1 Avastin, Herceptin, Actemra up Biennial price cuts effective April 2010 Emerging markets / International 26% Pharma sales, +6% 1 Further increasing penetration for all major products All growth in local currencies; 1 Excluding Tamiflu 17

18 HY 2011: Pharma sales drivers Lucentis, Oncology and Actemra driving growth Herceptin Lucentis MabThera/Rituxan Actemra/RoActemra +10% +32% +6% +99% TNKase/Activase Boniva Pegasys CellCept Neorecormon/Epogin Mircera Avastin +21% -17% -11% -14% -20% +25% -8% US Western Europe Japan International Tamiflu: -400m; -58% Absolute amounts in CHF m at 2010 exchange rates 18

19 HY 2011: Pharma Division Profitability improvement driven by ongoing business and continuous efficiency gains 2011 CHF m % sales Sales 16, vs local growth -1% Royalties & other op inc Cost of sales -3, M & D -2, R & D -3, G & A G&A excl. excise tax Core operating profit 7, % -9% -2% -11% -10% in CHF COGS & PC 2 : -2% 8% 5% 11% 2 Cost of goods sold & period cost 19

20 HY 2011: Solid growth of the oncology franchise Major brands CHF bn MabThera/ Rituxan local growth +6% Ongoing roll-out of 1L maintenance in NHL approved in Oct 10 in EU and Jan 11 in US; further uptake in CLL Avastin Herceptin -8% +10% US & EU: Impact from mbc indication and austerity measures; strong growth in Emerging markets and Japan Expanded access in Emerging markets, increased HER2 testing and further uptake in HER2-positive gastric cancer Xeloda +4% Strong growth in key markets: US, Japan, China Tarceva +4% HY '11 Growth in US, Emerging markets and Japan Oncology HY 2011 sales: 9.8 bn 20

21 Lucentis Driven by growing market and new indications CHF m US sales +32% 1 HY '08 HY '09 HY '10 HY '11 Market share in RVO up: 24% from 22% in Q1 11 AMD: Lucentis share slightly affected following CATT Yr. 1 data release; patient pool increasing; no changes in reimbursement status Johns Hopkins University study on safety of Avastin and Lucentis in AMD not yet published in a scientific journal Diabetic Macular Edema (DME): US filing H2 11; DME and RVO combined market size slightly larger than as AMD 1 local currency; AMD = wet age-related macular degeneration; DME = diabetic macular edema Genentech, a member of the Roche Group, retains commercial rights in the US and Novartis has exclusive commercial rights for rest of the world 21

22 Actemra/RoActemra in Rheumatoid Arthritis Growing in all regions Actemra/RoActemra sales CHF m % Drivers for future growth sjia indication approved in April in US; launched in May 52-week ACT RAY monotherapy data to be presented soon HY '08 HY '09 HY '10 HY '11 DMARD IR (first-line biologic) filing 2012 in US H2H trial vs Humira (ADACTA): readout H Subcutaneous formulation: filing 2012 EU, 2013 US 1 local currency 22

23 Three potential NMEs to be launched in 2011/2012 Zelboraf (BRAF inh.) Metastatic melanoma Filed Q Vismodegib (Hedgehog inh.) Advanced basal cell carcinoma US filing planned 2011 Pertuzumab HER2+ 1L metastatic breast cancer Filing planned

24 Phase II Phase III 2011: Major clinical news for late-stage NMEs 6 Phase III and 10 Phase II studies Compound Indication Study Zelboraf (BRAFi) 1st line met melanoma BRIM3 Lucentis Diabetic macular edema RIDE RISE Avastin Relapsed ovarian cancer OCEANS pertuzumab + Herceptin 1st line HER2+ mbc CLEOPATRA Herceptin Early HER2+BC sc HANNAH vismodegib (Hedgehog i) Advanced BCC Pivotal study T-DM1 1st line HER2+ mbc PFS data GA101 Relapsed indolent NHL Head-to-Head against MabThera/Rituxan MetMAb NSCLC 2nd / 3rd line Final data lebrikizumab Asthma MILLY; MOLLY mericitabine Hepatitis C PROPEL final data; JUMP-C dalcetrapib CV risk reduction dal-vessel; dal-plaque 24

25 Data presentations in H Compound Trial Data availability T-DM1 T-DM1 vs. Herceptin+chemotherapy Ph II ESMO, September lebrikizumab MILLY, MOLLY Ph II (safety and efficacy) data ERS, September dalcetrapib Phase II dal-vessel, dal-plaque Ph II safety data; July 2011: at 50% interim analysis DSMB recommended to continue dal-outcomes ESC, August GA101 GAUSS Ph II, GA101vs. MabThera/Rituxan ASH, December pertuzumab CLEOPATRA, pivotal Ph III (add on to standard of care) SABCS, December 6-10 Herceptin SC HANNAH (subcutaneous administration) Top-line data in H2 25

26 Summary HY 2011 sales on track to meet the guidance Profitability increase supported by ongoing business and continuous efficiency gains Pipeline further maturing with 3 potential NME launches in 2011/

27 Diagnostics Division Daniel O Day COO Roche Diagnostics 27

28 HY 2011: Diagnostics Division sales Maintaining IVD market leadership and growth change in % CHF m CHF m CHF local Professional Diagnostics 2,449 2, Diabetes Care 1,489 1, Molecular Diagnostics Applied Science Tissue Diagnostics Diagnostics Division 5,250 4,

29 HY 2011: Diagnostics Division sales Growth driven by Asia-Pacific and North America CHF 4,856 m local sales growth North America 24% Diagnostics Division 5% 1' Latin America 7% North America 5% 615 Asia Pacific 13% EMEA 1 1% 253 Japan 5% Latin America 13% 2'469 EMEA 1 51% Asia Pacific 17% Japan 8% 1 Europe, Middle East and Africa 29

30 Market leadership driving sales Sustained high growth in Professional & Tissue Diagnostics Professional Dia CHF bn HY 2011 vs. HY 2010 local growth +9% Driven by immunoassays (+13%); CE mark for Vitamin D total test (D2D3); Roll-out cobas c 702 clin chem module Diabetes Care +1% Strong growth in developing markets & Japan; New products awaiting regulatory approval in the US Molecular Dia +2% FDA approval for cobas HPV test; Filing for cobas BRAF V600 mutation test (EU & US) and cobas CT/NG test (US) Applied Science -4% Negative impact by one-time orders in Q1 10 related to H1N1 testing; Launch of LightCycler Nano for real-time PCR Tissue Dia +16% EMEA North America RoW Sales driven by immunohistochemistry (IHC) tests; FDA approval for HER2 Dual ISH assay

31 Diagnostics Division performance HY 2011 Profit increase primarily due to higher sales and improved CoS ratio 2011 CHF m % sales Sales 4, vs local growth 5% Royalties & other op inc Cost of sales -2, M & D -1, R & D % 1 COGS & PC : +5% 2% 7% 11% G & A Admin: +3% 2% Core operating profit 1, % in CHF 5% 1 Cost of goods sold & period cost 31

32 Professional Diagnostics Serum work area driving revenue growth Nth America +8% Immunoassays +20% Clinical chemistry +7% Latin America +15% Immunoassays +15% Clinical chemistry +16% EMEA +4% Immunoassays +7% Clinical chemistry +3% Japan +14% Immunoassays +22% Clinical chemistry +4% Asia Pacific +21% Immunoassays +26% Clinical chemistry +19% cobas 8000 modular analyser series available worldwide clin chem cobas c 702 module 5 new immunoassays launched in EU and/or US Total Vit D total, HE4, HBsAg quant, CMV Avidity, hgh PVT acquisition completed pre- and post- analytical automation & workflow EMEA = Europe, Middle East, Africa All growth in local currencies 32

33 Roche HPV Test setting new standard HPV genotype 16/18 testing identifies women at highest risk for cervical cancer Evidence of medical value ATHENA trial: 47,000 women New physician-focused go-tomarket approach in the US Detection of CIN3+ in Primary Screening HPV Sensitivity (%) 92.0 Specificity (%) 90.2 PAP Superior performance to PAP 1 in 10 women who had normal pap & tested positive for HPV-16 and/or 18 had pre-cancer Special OB/GYN sales force Dedicated sales reps Medical marketing of key trial results Driving cobas HPV test adoption 33

34 Building a cervical cancer portfolio Complementary solutions for risk identification and detection of disease cobas HPV test mtm Acquisition detects HPV DNA plus genotypes 16 & 18 in cytology preparations detects p16 & Ki-67 protein expression in cytology preparations detects p16 protein expression in tissue biopsies screening triage cervical lesions/ cancer Risk identification of disease Disease detection and characterisation CINtec Plus is approved as CE-IVD in Europe. CINtec Histology is approved as CE-IVD in Europe and Class 1 in US. 34

35 HER2 Dual ISH provides fully automated alternative to HER2 FISH assays Fits into anatomic pathology lab workflow Rapid time to result (12 hr vs 36 hr) No darkroom or fluorescent microscope required Improves visualization for the pathologist View entire tissue sample and HER2 gene status shown in context of tumor morphology Delivers patient value Showed 96% concordance to FISH, with majority discordant cases correctly identified by Dual ISH* Fully Automated IHC/ ISH BenchMark XT Brightfield detection Leading and changing the market Achieved leading position in EU just 12 months post-launch Large BenchMark installed base in US ISH = in situ hybridisation; FISH: fluorescence in situ hybridisation * Publication in progress Dual ISH staining HER2 gene (black) and chromosome 17 (red) 35

36 Key launches for 2011* Diagnostics PHC Investor Event London, Sept 21 st 2011 Professional Diagnostics Diabetes Care Molecular Diagnostics Vitamin D total and HE4 immunoassays (EU) cobas 8000 modular analyzer series, cobas c 702 module (EU cobas b 123 POC system for bloodgas & electrolytes (US) Accu-Chek Mobile LCM (EU) Accu-Chek Combo (US) Accu-Chek Nano (US) cobas 4800 HPV Test (US) cobas 4800 EGFR Mutation Test (EU) cobas 4800 KRAS Mutation Test (EU) cobas 4800 BRAF V600 Mutation Test (EU, US), US) Applied Science Tissue Diagnostics HLA genotyping on GS Junior & FLX sequencing systems (global) GS FLX Titanum-XL system (global) Ultra-high resolution CGH arrays (global) LightCycler Nano for real time PCR analysis (global) ER/PR antibody for IHC (US) HER2 dual colour ISH probe (US) OptiView detection system (US, EU) Diagnostics Division Outlook: Sales growth significantly above the market * Subject to appropriate regulatory approvals barring unforeseen events 36

37 Group Alan Hippe Chief Financial Officer 37

38 HY 2011: Highlights Core EPS +10% 1 Operating profit, financial result & taxes driving profit growth Strong operating free cash flow 27% growth in local currency (+7% in CHF) Early buy-back of 2013 EUR bond (EUR 962 m) Operational Excellence / Productivity improvements Actions implemented and on track 1 local currency 38

39 HY 2011: Group performance Core EPS growth +10% 1 CHF m %Change CHF LC Sales 24,636 21, Core operating profit 9,159 8, as % of sales Core net income 6,062 5, as % of sales Attributable to Roche shareholders 5,965 5,697-4 Core EPS (CHF) IFRS net income 5,565 5, as % of sales local currency 39

40 HY 2011: Group operating performance Positive effects of Operational Excellence Sales 2011 vs local growth 0% Major drivers Underlying sales growth of Herceptin, Lucentis, MabThera/Rituxan and Actemra Royalties & other op. inc Cost of sales -3% M & D -5% R & D 0% G & A G&A excl. excise tax -6% 5% COGS/PC 1 : +1% 5% Higher milestone income and product disposal income Lower royalty (e.g. Tamiflu) and manufacturing costs Primary care sales force reduction & cost management Project prioritisation and OpEx savings (Pharma -2%) Increase due to excise tax in the US Efficiency improvements Core operating profit -10% in CHF 5% 1 Cost of goods sold & period cost 40

41 HY 2011: Group core operating profit and margin Strong margin increase over years CHF m 35.0% 37.2% 38.1% +1.8 % p 1 (+0.9 % p) 40.0% 42.2% 43.9% +2.7 %p 1 (+1.7 %p) % of sales 8'403 9' % 1 (-10 %) 8'251 7'650 8' % 1 (-10 %) 7' % 22.3% 21.9% -0.2 %p 1 (-0.4 %p) ' % 1 (-9 %) 1'063 1 local currency Roche Group Pharma Division Diagnostics Division 41

42 What we announced at the beginning of the year Operational Excellence to offset potential adverse factors Operating profit Top-line pressures & risks EU & US healthcare reforms (CHF ~500 m impact) Lower Tamiflu sales (by CHF ~600 m) Avastin mbc sales at risk (up to CHF ~800 m) Boniva, CellCept patent expiries (up to CHF ~500 m) Positive impact from Organic growth Operational Excellence (CHF 1.8 bn) Genentech synergies (CHF 200 m) Avastin sales in other indications/regions (up to CHF ~500 m) 42

43 What happened? Core operating profit development Profit growth driven by productivity improvements US healthcare reform incl. excise tax EU austerity measures Japan price cuts '834 Core Op. Profit FY10 Fx rates -367 Tamiflu Avastin US/WE CellCept US/WE Boniva US/WE sales Profit growth underlying business +950 Cost savings OpEx/ GNE integration Core Op. Profit FY10 Fx rates +5% 43

44 Currency, hedging, and financial market uncertainties Hedging Translation exposures: Natural hedge through cost base Transaction exposures, mainly bonds and receivables: derivative hedge Greece: EUR 0.4 bn receivables settled with zero coupon government bonds; vast majority already sold, only small exposure left (CHF 36 m) Other critical countries, including Greece: detailed action plans to foster collections. For selected customers moved to cash on delivery 44

45 Roche Group currency exposure on sales and core operating costs Sales Operating costs CHF bn CHF USD EUR JPY Others FY 2010 currency structures; operating costs include all items between the sales and the operating profit lines 45

46 Currency impact on Swiss Franc results In case of continued currency crisis CHF/USD 1.08 average YTD Average YTD % % Monthly average fx rate 2011 Fx Rate at 30 June 2011 Assuming the 30 June 2011 exchange rates remain stable until year-end, FY 2011 impact is expected to be (%) J F M A M J J A S O N D HY FY CHF/EUR Average YTD % 1.27 average YTD % Sales Core operating profit Core EPS J F M A M J J A S O N D 46

47 Balance sheet 30 June 2011 Strong fx impact, equity ratio increased to 20% CHF bn Cash and marketable securities Other current assets Non-current assets % % % % % Current 25% liabilities 28% 15% % Non-current liabilities % % % % 55% 55% 19% 12% 20% Equity (Net assets) 30/06/10 31/12/10 30/06/11 30/06/10 31/12/10 30/06/11 Assets Equity & liabilities 47

48 Committed to growing operating free cash generation Gilead 52% Biogen 52% Amgen 36% Sanofi 36% AZ 35% Lilly 34% Abbott 32% Roche 30% Takeda 30% J&J 29% BMS 29% Novartis 28% Merck 23% Becton D. 21% Astellas 19% Pfizer 16% GSK Bayer Operating free cash flow 2010 (% of sales) 12% 14% Group operating free cash flow (CHF bn) and margin 21.8% % % % 6.9 HY 2008 HY 2009 HY 2010 HY 2011 Ø 28% (27% excl. Biogen and Gilead) 48

49 Increasing shareholder value P&L: increasing profitability Operating profit margin increase (37.2% to 38.1% HY 2011) Delivering on productivity improvements Headcount: 3,000 released from work, further 800 notified since start of Operational Excellence Sites: closing/divesting of Boulder, Burgdorf, Kulmbach, Graz and Palo Alto done or ongoing Increasing cash generation HY 2011: Operating free cash flow +27% 1 (+7% CHF) Committed to an attractive dividend policy Grow in-line with Core EPS; maintain at least last year s dividend in CHF 1 local currency 49

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51 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 2011 results Diagnostics Foreign exchange rate information 51

52 Roche Group pipeline phase I phase II (38 NMEs) (19 NMEs + 7 Als) RG7256 BRaf inh(2) BRAF mut. melanoma RG7112 MDM2 ant (2) solid & hem tumors RG7167 CIF/MEK inh solid tumors RG7304 Raf & MEK dual inh solid tumors RG7321 PI3 kinase inh solid tumors RG7334 anti-plgf Mab solid tumors RG7356 anti-cd44-mab solid tumors RG7420 MEK inh solid tumors RG7421 MEK inh solid tumors RG7422 PI3 K/mTOR inh solid & hem tumors RG7440 AKT inhibitor solid tumors RG7444 FGFR3 Mab multiple myeloma RG7446 cancer immunotherapy oncology - RG ADC prostate ca. RG ADC ovarian ca. RG7459 IAP ant (2) solid tum & lymphoma RG7593 CD22 Mab ADC hem. malignancies RG7594 antiangiogenic solid tumors RG ADC hematologic tumors RG7597 anti-her3/egfr m. epithelial tumors RG ADC oncology RG7601 Bcl-2 inh CLL RG7602* - solid tumors or lymphoma RG solid tumors or NHL RG7604 PI3K inh oncology RG7686 anti-glypican-3 Mab liver cancer CHU ALK inhibitor NSCLC CHU - solid tumors RG4934 anti-il-17 Mab RA RG7185 CRTH2 antag asthma RG7413 Mab Beta7 ulcerative colitis RG7432 nucleoside pol inh (9) HCV RG7236 Cat S antag CV risk in CKD RG7273 ABCA1 inducer dyslipidemia RG7685 GIP/GLP-1 dual ago type 2 diabetes RG1578 mglur2 antag (2) depression RG1662 GABRA5 cogn. disorders RG7166 triple reuptake inh depression Status as of June 30, 2011 RG1273 pertuzumab HER2+ EBC RG1273 pertuzumab HER2+ mbc 2 nd line RG3502 T-DM1 HER2+ EBC RG3616 vismodegib advanced BCC RG3616 vismodegib operable BCC RG3638 MetMAb mnsclc RG3638 MetMAb mbc RG7160 EGFR Mab solid tumors RG7204 Zelboraf papillary thyroid cancer RG7433 navitoclax (ABT-263) sol & hem tum RG7414 anti-egfl7 Mab solid tumors CHU topoisomerase I inh gastric cancer RG3637 lebrikizumab asthma RG7415 rontalizumab SLE RG7416 anti-lt alpha Mab RA RG7449 anti-m1 prime Mab asthma RG7128 mericitabine HCV RG7227 danoprevir HCV RG beta HSD inh metabolic diseases RG1512 P selectin Mab ACS/CVD RG7418 anti-oxldl Mab sec prev CV events RG1450 gantenerumab Alzheimer s RG1594 ocrelizumab RMS RG7090 mglur5 antag (2) TRD RG7412 anti-abeta Mab Alzheimer s RG7417 anti-factor D Fab geographic atrophy phase III (8 NMEs + 30 Als) RG105 Rituxan NHL fast infusion RG105 MabThera NHL s.c. formulation RG435 Avastin HER2+ BC adj RG435 Avastin BC combo Herceptin 1 st line RG435 Avastin NSCLC adj RG435 Avastin HER2-neg. BC adj RG435 Avastin triple-neg. BC adj RG435 Avastin relapsed ovarian ca RG435 Avastin high risk carcinoid RG435 Avastin glioblastoma 1 st line RG435 Avastin mcrc TML RG435 Avastin mbc 2 nd line RG597 Herceptin HER2+ BC s.c. form. RG597 Herceptin HER2+ adj BC (2yrs) RG1273 pertuzumab HER2+ mbc 1 st line RG1415 Tarceva NSCLC adj RG1415 Tarceva NSCLC EGFR mut 1 st line RG3502 T-DM1 HER2+ mbc 1 st l. RG3502 T-DM1 HER2+ adv. mbc RG7159 GA101 CLL RG7159 GA101 inhl relapsed RG7159* GA101 DLBCL RG7159* GA101 inhl front-line RG105 MabThera ANCA assoc vascul RG1569 Actemra ankylosing spondylitis RG1569 Actemra sc formulation RA RG1569 Actemra early RA RG1569 Actemra RA DMARD IR H2H RG3648 Xolair chronic idiopathic urticaria RG1439 aleglitazar CV risk reduction in T2D RG1658 dalcetrapib atherosc. CV risk red. RG3626 Activase extended time window AIS CHU tofogliflozin (SGLT2) type 2 diabetes RG1594 ocrelizumab PPMS RG1678 GRI schizophrenia negative sympt. RG1678 GRI schizophrenia subopt control RG3645 Lucentis diabetic macular edema RG3645 Lucentis AMD high dose * FPI in July RG435* RG1415* RG7204 RG1569** CHU Registration (1 NME + 4 Als) Avastin Tarceva Zelboraf Actemra EPOCH * submitted in the EU ** Approved in the US; CHMP positive recommendation May 2011 NME Additional Indication ovarian cancer 1 st line NSCLC EGFR mut 1 st line metastatic melanoma Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology Others 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 sjia chemo induced anemia 52

53 Changes to the development pipeline Since Q update on April 14, 2011 New to Phase I New to Phase II New to Phase III New to Registration New NMEs transitioned from Ph0 RG7356 anti-cd44 Mab solid tumors RG ADC ovarian cancer RG7603 solid tumors or NHL RG7446 Cancer immunotherapy oncology RG ADC oncology RG7601 Bcl-2 inh CLL RG7602 solid tumors or lymphoma New NMEs in Ph2 following FPI RG7160 EGFR Mab solid tumors RG7414 anti-egfl7 Mab solid tumors RG7412 anti-abeta Mab AD RG7417 anti-factor D Fab geographic atrophy New AI in Ph2 following FPI RG7204 Zelboraf papillary thyroid cancer New AI in Ph3 following FPI RG7159 GA101 DLBCL RG7159 GA101 front-line inhl Newly displayed as Chugaimanaged NME CHU tofogliflozin (SGLT2 inh) T2D New NME Filed RG7204 Zelboraf met. melanoma Removed from Phase I Removed from Phase II Removed from Phase III Approvals Discontinuation (1NME) RG3639 dulanermin cancer Discontinuation (1NME) RG4930 oxelumab (OX40L Mab) asthma Reverted to Partner (2NMEs) EVO NMDA receptor antag TRD RG7201 SGLT2 inh type 2 diabetes NDA Approval in EU RG435 Avastin mbc combo Xeloda NDA Approval in US RG105 Rituxan ANCA vasculitis 53

54 Projected NME Submissions and their Additional Indications Projects Currently in Phase 2 and 3 anti-egfl7 Mab (RG7414) solid tumors EGFR Mab (RG7160) solid tumors GA101 (RG7159) DLBCL GA101 (RG7159) NHL indolent frontline GA101 (RG7159) NHL refractory MetMAb (RG3638) mnsclc and mbc navitoclax ABT-263 (RG7433) solid & hem tumors anti-lt alpha Mab (RG7416) rheumatoid arthritis lebrikizumab (RG3637) asthma anti-m1 prime Mab (RG7449) asthma aleglitazar (RG1439) CV risk reduction in T2D P selectin humab (RG1512) CVD Anti-oxLDL (RG7418) prevent secondary CV 11 beta HSD (RG4929) metabolic diseases T-DM1 (RG3502) HER2+ mbc 1st line pertuzumab (RG1273) HER2+ EBC gantenerumab (RG1450) Alzheimer s disease Zelboraf (RG7204) met. melanoma GA101 (RG7159) CLL mericitabine (RG7128) HCV vismodegib (RG3616) operable basal cell ca mglur5 antag (2) (RG7090) Txt resistant depression pertuzumab (RG1273) HER2+ mbc1st line dalcetrapib (RG1658) atherosclerosis CV risk red. danoprevir RG7227) (HCV protease inh) Zelboraf (RG7204) Papillary thyroid ca anti-abeta Mab (RG7412) Alzheimer s disease vismodegib (RG3616) adv basal cell ca (US) T-DM1 (RG3502) HER 2+ advanced mbc glycine reuptake inhib. (RG1678) schizophrenia# ocrelizumab (RG1594) PPMS and RMS rontalizumab (RG7415) SLE anti-factor D Fab (RG7417) geographic atrophy Post 2014 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. Filing timelines in EU subject to discussion with EMA. Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology NME 54 Status as of June 30, 2001

55 Projected additional indications submissions of existing products Projects currently in Phase 2 and 3 Avastin mbc 2 nd line (EU) Avastin mcrc TML Herceptin sc formulation HER2+ Avastin + Herceptin HER2+ mbc 1 st line MabThera sc formulation (EU) Avastin HER2+ BC adj Tarceva (US) NSCLC EGFR mutation 1 st line Avastin triple negative BC adj Rituxan NHL faster infusion (US) Actemra DMARD IR (US) Avastin glioblastoma 1 st line Avastin ovarian cancer 1 st line (US) Actemra ankylosing spondylitis Herceptin HER2+ BC adj 2 year Avastin relapsed ovarian cancer Actemra RA DMARD H2H (EU) Xolair (US) chronic idiopathic urticaria Lucentis AMD high dose (US) Activase extended time window AIS (US) Actemra sc formulation (EU) Actemra early RA Avastin HER2- BC adj Lucentis diabetic macular edema (US) Lucentis AMD 0.5 mg PRN (US) Actemra sc formulation (US) Tarceva NSCLC adj Avastin NSCLC adj Post 2014 Unless stated otherwise, submissions are planned to occur in US and EU. Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology 55 Status as of June 30, 2011

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