Presentation to analysts Basel, October 14, Roche YTD Sep '04 Sales, Oct 14, 2004

Transcription

1 Roche Thid quate 2004 Pesentation to analysts Basel, Octobe 14,

2 This pesentation contains cetain fowad-looking statements. These fowad-looking statements may be identified by wods such as believes, expects, anticipates, pojects, intends, should, seeks, estimates, futue o simila expessions o by discussion of stategy, goals, plans o intentions. Vaious factos may cause actual esults to diffe mateially in the futue fom those eflected in fowad-looking statements contained in this pesentation among othes: 1. Picing and poduct initiatives of competitos; 2. Legislative and egulatoy developments and economic conditions; 3. Delay o inability in obtaining egulatoy appovals o binging poducts to maket; 4. Fluctuations in cuency exchange ates and geneal financial maket conditions; 5. Uncetainties in the discovey, development o maketing of new poducts o new uses of existing poducts; 6. Inceased govenment picing pessues; 7. Inteuptions in poduction; 8. Loss of o inability to obtain adequate potection fo intellectual popety ights; 9. Litigation; 10. Loss of key executives o othe employees; and Advese publicity o news coveage Fo maketed poducts discussed in this pesentation, please see full pescibing infomation on ou website 3 Goup D. Eich Hunzike Chief Financial Office 4 2

3 YTD Sep 04: Gowth momentum maintained Stategic positioning on tack Sales gowth (+14 % 1 ) well above maket - in both divisions Divestitue of Roche Consume Health on tack Roche joins Dow Jones Sustainability Indexes undescoing moe than a centuy of sustainable development New IFRS ules to be implemented by 2005 wokshop on the pinciples at full yeas pesentation (including estimated impact of IFRS changes on 2004 esults) special event duing Q1 05 to explain elevant IFRS changes and impact on Roche based on estated H1 '04 and FY '04 1 local gowth, Goup continuing 5 YTD Sep '04: Continued gowth significantly above maket aveage % change in CHF m CHF m CHF local Phamaceuticals 14,192 16, Roche Rx 9,584 10, Genentech Rx 2,466 3, Chugai Rx 2,142 2, Diagnostics 5,382 5, Goup continuing 19,574 21, OTC (discontinuing) 1,306 1, VFC (discontinuing) 1 2, Goup 23,140 23, consolidated until 30 Septembe

4 Inceased cuency impact in Q3 04 Goup continuing Deviation of aveage exchange ates CHF / USD -8.2 % -6.4 % -7.1 % CHF / EUR 7.0 % 4.2 % 2.6 % CHF / 100 JPY 1.9 % 2.5 % 0.9 % Diffeence in CHF / local gowth -0.7 %pts -1.0 %pts -2.3 %pts 15.4 % 14.7 % 14.4 % 13.4 % 14.2 % 11.9 % Sales gowth local gowth CHF gowth Q1 H1 YTD 9 7 Outlook 2004 Phamaceuticals and Diagnostics division sales gowth above maket (in local cuencies) Phama opeating pofit magin 1 aound 26 % in 2004 (full yea) By the end of 2004 conditions in place fo a balanced financial income Tax ate aound 29 % Significant incease in net income... and beyond 2005 Phamaceuticals opeating pofit magin 1 boadly in line with 2004 Diagnostics opeating pofit magin 1 aound 23 % in 2006 baing unfoeseen events 1 befoe exceptional items 8 4

5 Phamaceuticals William M. Buns Head of Phama 9 Opeational Pefomance Existing gowth dives Ongoing and upcoming launches 10 5

6 Q3 '04: Stong gowth fom existing poducts and base set fo new majo launches Gowth momentum fo Phamaceuticals maintained (+17 % 1 ) Poduct potfolio futhe focused, with majo gowth dives now epesenting > 50 % of total sales Launch of thee NMEs ongoing and unde pepaation Majo news flow to futhe suppot clealy medical diffeentiated potfolio: MabThea: appoved in EU fo the teatment of 1st line inhl Taceva: filed in US and EU fo elapsed NSCLC, suvival benefit also shown in panceatic cance Bonviva: once-monthly oal filed in EU 1 local gowth 11 Stong sales gowth continues YTD Sep '04 CHF m Gowth vs in CHF Gowth vs in Local Cuencies Roche Rx 10, Genentech 3, Chugai Rx 2, Phamaceuticals 16,

7 Key fanchises diving gowth % of phama sales gowth (local) maket gowth Noth Ameica 38 % 24 % 8 % 1 Japan 14 % 7 % 2 % 1 Region Euope 33 % 14 % 6 % 1 Total 85 % Oncology 35 % 31 % 15 % 2 Tansplantation 8 % 13 % 8 % 3 Viology 11 % 66 % 6 % 4 Anemia 8 % -1 % 3 % 5 Total 62 % 28 % 1 IMS YTD July '04 2 ATC L1 & L2 (YTD June '04) 3 Immunosuppessants in Tansplantation (YTD June '04) 4 HIV, HCV (YTD June '04) 5 estimated enal only, J&J, Amgen & Roche company epots YTD Sep ' poducts with annualized sales of > 1 CHF bn MabThea / Rituxan NeoRecomon / Epogin Pegasys / Copegus CellCept Heceptin Rocephin Xenical Avastin Xeloda Nutopin / Potopin Kytil 1.55 (+1 %) 1.18 (+99 %) 1.06 (+12 %) 1.06 (+25 %) 0.98 (2 %) 0.46 (-1 %) 0.45 (n.a.) 0.39 (-1 %) 0.34 (+9 %) 0.33 (+8 %) 2.50 (+31 %) all at local gowth ates CHF billion 14 7

8 Key bands moe than half of potfolio % of phamaceutical sales 60% CHF m % 40% 30% 20% 10% 0% 3% 2% 3% 4% 7% 6 % 7 % 7 % 7 % 11 % 10 % 14 % 16 % YTD Sep '03 YTD Sep ' Gowth vs. Sep '03 Avastin Xeloda Pegasys/ Copegus Heceptin CellCept NeoRecomon/ Epogin MabThea/ Rituxan ~ CHF 1.8 billion additional sales 15 Opeational Pefomance Existing gowth dives Ongoing and upcoming launches 16 8

9 MabThea / Rituxan The no. 1 selling oncology band woldwide CHF bn 3 Sales + 31 % 1 6 % (+135 % 1 ) % (+54 % 1 ) 61 % (+18 % 1 ) 0 YTD Sep '01 YTD Sep '02 YTD Sep '03 YTD Sep '04 US Euope/RoW Japan Sales of CHF 2.5 billion YTD Sep '04 EU CHMP appoval fo 1 st line inhl eceived August 04 Futhe significant data (maintenance inhl, 1 st line anhl and inhl) to be pesented at ASH local gowth 17 Heceptin on gowth path Sales and tials fimly pogessing CHF bn Sales + 25 % 1 7 % (+12 % 1 ) % (+18 % 1 ) % (+36 % 1 ) 0.0 YTD Sep '01 YTD Sep '02 YTD Sep '03 YTD Sep '04 US Euope/RoW Japan Sales of CHF 1.1 billion YTD Sep '04 EU CHMP positive opinion to enlage the diagnostic possibilities to assess HER2 status eceived Septembe 04 Tial pogam (homonal, adjuvant) on tack 1 local gowth 18 9

10 Xeloda Ex factoy sales picked up again CHF m Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 RoW US Japan Sales of CHF 388 million YTD Sep '04 (-1 % 1 ) X-ACT data submitted in Euope and the US fo the teatment of colon cance afte sugey Extensive tial pogam ongoing 1 local gowth 19 Pegasys / Copegus Additional indications to futhe expand maket CHF bn 1.5 Copegus RoW + 99 % 1 Copegus US 1.0 Pegasys J Pegasys US Pegasys RoW YTD Sep '02 YTD Sep '03 YTD Sep '04 Additional indications Hep C nalt HCV-HIV coinfected Hepatitis B Status EU positive opinion Filed US (pioity eview) and EU Filed US and EU Sales of CHF 1.2 billion YTD Sep '04 Maket leadeship maintained (60 % 2 ) Pegasys filed in thee additional indications 1 local gowth 2 wold wide pegylated intefeon maket (58% excl Japan), souce: IMS Q2/

11 CellCept Stengthening its maket leading position in the US 50% 40% 30% 20% 10% US maket shae 1 36% 34 % 32 % 33% 31 % 27 % 25 % 17 % 14% 2 % (+21 % 2 ) 45 % (+4 % 2 ) 53 % (+21 % 2 ) 0% CellCept Pogaf Sandimmun/ Neoal US Euope/RoW Japan Sales of CHF 1.1 billion (+12 % 2 ) YTD Sep '04 Change in distibuto patten Stong US pesciption gowth NRx gowing with 19 % 3 1 MAT June 2002, MAT June 2003 and MAT June 2004; souce IMS 2 local gowth 3 MAT Septembe 2004, DDD database 21 Anemia fanchise Stable sales in difficult maket envionment CHF bn 1.5 Sales +1 % % (-1 % 1 ) 63 % (+3 % 1 ) 0.0 YTD Sep '01 YTD Sep '02 YTD Sep '03 YTD Sep '04 Euope/RoW Japan Sales of CHF 1.5 billion YTD Sep '04 NeoRecomon gowing 16 % in oncology CERA: phase III enal going well and on tack, phase II oncology data expected end '04 1 local gowth 22 11

12 Opeational Pefomance Existing gowth dives Ongoing and upcoming launches 23 Avastin Aleady top 8 in the Roche potfolio 300 Sales CHF m Q1 '04 Q2 '04 Q3 '04 Sales of CHF 452 million YTD Sep '04 (7 months) Cuently awaiting EU appoval in 1 st line mcrc Fist in class molecule with mechanism of action potentially efficient in a wide ange of tumos Extensive tial pogam ongoing 24 12

13 Avastin Clinical Phase III development in multiple cances Indication Regimen Tial size Enolment status mcrc 1 st line NO nd line E3200 adjuvant CRC NSABP AVANT mbc 1 st line E2100 BO17709 NSCLC 1 st line E4599 BO17704 RCC 1 st line CALGB90206 B Panceatic Ca 1 st line CALGB80303 BO17706 XELOX ± Avastin vs. FOLFOX ± Avastin FOLFOX ± Avastin FOLFOX ± Avastin FOLFOX ± Avastin vs. XELOX ± Avastin Paclitaxel ± Avastin Design to be published Caboplatin/Taxol ± Avastin Cisplatin/Gemcitabine ± Avastin Intefeon ± Avastin Intefeon ± Avastin Gemcitabine ± Avastin Design to be published 1, ,500 3, tbd tbd Ongoing Complete Stated Q3 '04 Stat Q4 '04 Complete Stat H1 05 Complete Stat Q4 '04 Ongoing Ongoing Ongoing Stat H Taceva Suvival benefit in cances with high medical need Impovement in oveall suvival in 2 nd / 3 d line NSCLC patients filed in US and EU in August 2004 Impovement in oveall suvival in patients with locally advanced o metastatic panceatic cance discussions on filing stated Aound 30 tials 1 ongoing in vaious cance types and indications 1 Roche diven 26 13

14 Taceva in panceatic cance (PA3) 23.5 % impovement in oveall suvival Patients with locally advanced o metastatic, panceatic cance (n = 569) Daily oal Taceva 100 mg/day o 150 mg/day plus gemcitabine Gemcitabine plus placebo Headline study esults Statistically significant 23.5 % impovement in oveall suvival Statistically significant impovement in pogession-fee suvival No unexpected safety issues (pincipally ash and diahea) 27 Osteopoosis A gowing maket diven by convenience % of patients on theapy p< O N D Pesistence 1 J 03 F M A M Weekly Daily J 03 J A S O Factue ate (/10 y) Factue isk 2 Consistent uses (mainly weekly) Inconsistent uses (mainly daily) Any No. of pevious factues Poo adheence to teatment in chonic, asymptomatic diseases Database studies show that afte 12 months, between 48 % and 84 % of patients ae not pesistent with thei osteopoosis teatment (once-daily o once-weekly) 1 NDCHealth 2 Sebalt et al., EULAR

15 Boniva An effective once-monthly oal teatment fo osteopoosis % Lumba spine bone mineal density (BMD incease) mg/50mg 100mg 150mg % One-yea safety analysis, no. of oveall advese events mg/50mg 100mg 150mg Monthly Boniva at least equivalent in inceasing BMD as the daily egimen 150 mg/ month dose showed the geatest incease in BMD 1 and geatest eduction in bone esoption 2 In all the studies, once-monthly dosing was geneally well toleated and simila to daily dosing in tems of advese effects 1 significantly geate popotion of women achieved significant inceases above baseline 2 significantly geate popotion of women achieved pedefined eductions 29 Roche R&D pipeline today Total of 63 NME s R873 R1541 R1628 R1593 R1496 R1498 R1497 R1576 R1627 R1603 R547 R1454 R1559 R1645 R1626 GEN GEN MED phase 0 (18) phase I (24) phase ll (14) phase III/egistation (7) MED IBD heumatoid athitis dyslipidemia obesity type II diabetes Pakinson's depession Alzheime's Alzheime s solid tumos solid tumos solid tumos solid tumos HCV heumatoid athitis basal cell cacinoma HIV R1484 R1558 R1295 R1503 R1594 R1438 R1439 R1440 R1499 R1204 R1485 R1500 R1533 R1577 R1550 GEN GEN BAS IPS ANT ARQ ISO CHU CHU SUI bacteial infections heumatoid athitis heumatoid athitis heumatoid athitis type II diabetes type II diabetes type II diabetes type II diabetes depession/anxiety Alzheime s Alzheime s Alzheime s Alzheime s beast cance cance theapy wound healing antifungal type II diabetes solid tumos solid tumos tansplant multiple myeloma solid tumos R1569 R483 R673 R1273 R1492 R1536 R411 R667 CHU CHU CHU CHU CHU CHU heumatoid athitis type II diabetes depession/anxiety solid tumos solid tumos solid tumos asthma emphysema coonay heat disease bone metastases osteopoosis osteopoosis gastopaesis post hepatectomy R744 R484 R435 R1415 GEN GEN CHU A CERA anaemia Boniva/ Bonviva osteopoosis Avastin Taceva oncology macula degeneation Lucentis Veleti acute heat failue subaach. Antevas haemohage Roche managed Pojects (41) Opt-in Oppotunities (10) CHU Chugai GEN Genentech ANT BAS IPS ISO MED ARQ oncology Antisoma Basilea Ipsen Isotechnika Medivi AQule A Paticipations (11) Status as of Septembe 30,

16 Pending appovals on tack and as outlined at beginning 04 Pending appovals fo NMEs Avastin 1 st line mcrc Taceva 2 nd / 3 d line NSCLC (US pioity eview) Region EU / CH US / EU Pending appovals fo majo line extensions Boniva (once-monthly oal) Fuzeon 48-weeks data in HIV Inviase 500 mg (US pioity eview) Pegasys Hepatitis B Pegasys HCV/HIV co-infection (US pioity eview) Pegasys nomal ALT (positive opinion in Septembe '04) Nutopin / Nutopin AQ fo idiopathic shot statue Xeloda adjuvant monotheapy CRC Xenical teatment and pevention of T2D (XENDOS) Region US /EU US US / EU US / EU US EU US US / EU US 31 Roche managed pojected submissions fo Q4 04 and ove the next yeas Follow-on Submissions Fist Submissions Phase III R744 enal & cance anaemia R673 depession R411 asthma R1558 bacteial infections R1492 solid tumos Q Boniva/Bonviva osteopoosis, iv intem. Phase III decided Phase II Phase I MabThea RA, TNF failues (EU) Heceptin mbc homonal (EU) R1273 solid tumos (EU) R1569 Systemic onset Juvenile Idiopathic Athitis Bondonat metastatic bone pain R483 type II diabetes Avastin NSCLC (EU) Xeloda 1 st & 2 nd line mcrc combo Heceptin adjuvant BC (EU) MabThea RA signs, symptoms, stuctual damage (EU) R1569 heumatoid athitis Xeloda adj. CRC combo Avastin RCC (EU) Status as of Septembe 30,

17 Ou majo data milestones fo Q4 04 Avastin CHMP ecommendation MabThea phase IIb in 1 st line RA, data available Q4 04 CERA (R744) phase IIb in oncology, data available Q4 04 Omnitag (R1273) phase II in BC and Postate Ca, data available end 04 / beginning '05 NK1 (R673) phase II in depession, data available end 04 / beginning '05 33 Ou gowth objectives fo 2004 and beyond Phamaceuticals 2004 Local sales gowth above the maket Opeating pofit magin 1 aound 26 % in 2004 (full yea)... and beyond 2005 opeating pofit magin 1 boadly in line with 2004 baing unfoeseen events 1 befoe exceptional items 34 17

18 Diagnostics Division Heino von Pondzynski Head of Diagnostics Division 35 Roche Diagnostics Key achievements YTD Sep 2004 Sales gowth Above the maket (in loc. cu.) Pofit magins Half yea Opeating pofit 1 magin Half yea EBITDA magin (24.2 %, up 2.9 pp) (33.9 %, up 3.4 pp) Poduct launches 14 poduct launches Deals New HIV coss-licensing ageements with Chion & Otho New 5 y contact with PVT in Centalized Diagnostics 1 befoe exceptional items 36 18

19 Opeational Pefomance Gowth Aeas 37 Diagnostics sales in vito & life science Gowth continues above maket YTD YTD gowth Sep 03 Sep 04 CHF m CHF m local CHF Diabetes Cae 1,927 2, % 9 % Molecula Diagnostics (ex. ind. bus.) % 12 % Centalized Diagnostics 1,931 2,037 6 % 5 % Nea Patient Testing % 2 % Roche in vito Diagnostics 4,915 5,274 8 % 7 % Applied Science % 7 % Molecula Diag - industial business % -4 % Life Science business % 5 % Roche Diagnostics 5,382 5,763 8 % 7 % 38 19

20 Above maket gowth in all egions Stong contibution fom all makets CHF 5,763 m local sales gowth Euope 1 47 % Asia-Pacific 7 % Japan 5 % Euope Noth Ameica Ibeia 5 % 9 % 11 % Ibeia 6 % Latin Ameica 3 % Othes 2 % Noth Ameica 30 % Latin Am Asia-Pacific 17 % 22 % Japan 9 % 1 Euope, Middle East and Afica (excl. Ibeia) * US: undelying gowth +9 % (ex. divestitues) 39 Poduct launches on tack fo 2004 Accu-Chek Go Elecsys P1NP STA CephaSceen (Coag) Accu-Chek Safe T-Po Plus HPV MWP (CE-IVD) Elecsys HIV Combi AmpliChip CYP450 (CE-IVD) Accu-Chek MultiClix HPV Linea Aay (RUO- US) LC Facto II Facto V (CE-IVD) Accu-Chek Spiit LightCycle L220 (CE-IVD) H1 H2 Elecsys S100 DataCae POC data management softwae Elecsys C-peptide Uisys 1800 D-TRON plus TaqMan CT Linea Aay HCV genotyping (RUO) Accu-Chek Pocket Compass 2.0 diabetes management softwae Launch dates ae estimates only and based on expected egulatoy appoval timelines; US launches may be late than indicated Linea Aay HCV Genotyping (CE-IVD) Integated Cobas AmpliPep + Cobas TaqMan HIV, HCV, HBV 40 20

21 Opeational Pefomance Gowth Aeas 41 Diabetes Cae and Accu-Chek Focused on integation - lancets, metes, stips & pumps YTD Sep '04: CHF 2,095 million (+10 % local gowth) AC Advantage AC Active/ Go AC Compact AC SoftClix Infusion Systems othe (+55 %) (+0 %) (n.a.*) (+2 %) (+9 %) (+1 %) YTD Sep '04 YTD Sep '03 Accu-Chek s leading position stengthened though: maketing initiatives (Compact) new poducts (Advantage III, Go) Advantage III extends platfom lifecycle and maintains high evenue level Fist insulin pump unde Accu-Chek band unveiled at EASD Accu-Chek D-TRONplus on tack fo Q4 04 Euopean launch communicates with AC bg metes though AC Pocket Compass softwae Upcoming FDA inspection of Bugdof * sales integated as of May 2003 AC = Accu-Chek 42 21

22 Innovative lancing platfoms Inceasing ease of blood sampling Accu-Chek Safe-T-Po Plus pofessionals Fist single-use device allowing individual depth setting 3 adjustable depth settings to achieve blood volume equied automatic etaction of needle fo safe handling Global oll out to be completed Q4 04 Accu-Chek MultiClix - consumes Fist lancing system with integated lancet exchange system six-lancet dum safe, convenient, hygienic lancet change suppots altenate site testing Global ole out stated in Euope Q lancing maket appox. 400m CHF Roche appox. 50 % maket shae 43 New manufactuing site in China Stengthening pesence in Asia and India Roche and Sanmina-SCI patne to poduce Accu-Chek Active metes in Shenzhen fo global maket ~ 800,000 metes expected in fist y optimize poduction and complement facilities in Mannheim and Indianapolis move poduction close to aea with high gowth oppotunity Inceased activities in India new sales foce established China * % pevalence ate of diabetes (~21 million people) - > 1.2 million diabetes patients diagnosed each yea (3,000/ day) * Souce: The Wold Health Oganization (WHO), China s Ministy of Health, 2003 figues 44 22

23 Fou unique new poducts mak the tansfomation of Diabetes Cae in 2005 Accu-Chek Aviva - next geneation blood glucose system - new technology & unique safety featues - will succeed Accu-Chek Advantage platfom Accu-Chek Compact Plus - thid step in integated systems - will futhe incease the attactiveness of the Compact line Accu-Chek Spiit - next geneation of highly dependable insulin pumps - fist Accu-Chek poduct coming out of Disetonic integation Accu-Chek Pocket Compass Softwae - innovative softwae solution using commecially available PDA s - bings blood glucose monitoing and insulin delivey togethe - povides data collecting and insulin ecommendation functionality Launch dates ae estimates only and based on expected egulatoy appoval timelines; US launches may be late than indicated 45 Molecula Diagnostics IVD Maket: YTD Sep 04: CHF 733 million (+14 % local) Blood Sceening HIV quant HCV qual/quant CT/NG HBV quant othe (+24 %) (+19 %) (+6 %) (+4 %) (+3 %) (+37 %) Life Science business: YTD Sep 04: CHF 87 million (+3 % local) Industial (+3 %) Molecula Diagnostics: YTD Sep 04: CHF 820 million (+13 % local gowth, +10 % CHF) Continued stong gowth in Blood Sceening: Japan Red Coss enewed 4 ys (with educed pool size) new contacts in Gemany (moving fom home bew to Roche) new installations in Mexico, Bazil, Latin Am. New TaqMan platfoms stengthening Viology business HIV, HCV, HBV New customes gowing CT/NG sales YTD Sep '03 YTD Sep '

24 COBAS TaqMan platfoms stengthening maket shae in competitive maket Sample pep Amplification, Detection, Results volume Cobas AmpliPep Cobas Amplico Cobas TaqMan 48 Cobas AmpliPep + docking station Cobas TaqMan 96 Launches ove 2004/5 high Launch dates ae estimates only and based on expected egulatoy appoval timelines; US launches may be late than indicated 47 Futue gowth dives Amplico HPV Test CE-IVD mak (EU) PMA submission unde pepaation fo filing with FDA (US) HPV test gaining acceptance Pogess in obtaining eimbusement in EU Tiage testing appoved in Fance AmpliChip CYP450 Test CE-IVD mak (EU) 510k documents submitted to FDA (US) Tials stated in US and Euope to show clinical utility and health benefit Initial focus in psychiaty Physicians who teat depession ae awae of CYP450 2D6 enzyme Dosage ecommendations exist aleady 48 24

25 Centalized Diagnostics New placements diving gowth Clinical chemisty Immunochemisty YTD Sep '04: CHF 2,037 million (+6 % local gowth*) Coagulation Hematology Uinalysis othe (+8 %) (-40 %) (+9 %) (+0 %) (+20 %) YTD Sep '04 YTD Sep '03 (+3 %) Immunochemisty continues huge gowth cuve, well ahead of maket +20 % vs mkt 1 +5 % Clinical Chemisty in line with maket gowth +3 % vs mkt +3 % MODULAR Analytics SWA, the leading Seum Wok Aea solution 1,800 global placements YTD Ove 900 system placements in Immunochemisty YTD * local gowth 9 % excluding US Hematology divestitue H heteogeneous immunochemisty maket 49 cobas nd geneation platfoms Extending ou lead in consolidating CC and IC Maket dynamics challenging customes to eview lab opeations move towads DRGs to contol costs and impove lab efficiency citical lack of tained laboatoy technologists Diving inceased demand fo consolidated wokstations Roche only supplie with 2nd geneation Seum Wok Aea solution (SWA) uniquely positioned to extend leadeship new 5 y coopeation and distibution ageement fo pe-analytical automation systems with Pobenveteiltechnik GmbH (PVT) cobas 6000 (cobas c 501, cobas e 601) (clinical- and immunochemisty module combinations fo medium volume wokload) Launch dates ae estimates only and based on expected egulatoy appoval timelines; US launches may be late than indicated time 50 25

26 Ealy detection of cance Novel biomakes fom Poteomics initiative Beast cance biomake BCM18 fist successful lead molecule tested with ove 900 selected clinical samples highe specificity, compaable sensitivity to CA 15-3, cuent tumo make fo beast cance combination of BCM18 with CA 15-3 significantly inceases sensitivity twelve additional beast cance candidates unde validation Colon cance biomake CRCM6 fist successful lead molecule tested with ove 800 selected clinical samples slightly highe sensitivity than CEA, cuent tumo make fo colon cance combination of CRCM 6 with CEA significantly inceases sensitivity eight additional colon cance candidates unde validation 51 Gowth objectives fo 2004 and beyond Diagnostics 2004 and beyond 2004: sales gowth above the maket in local cuency Moe than 20 poduct launches in 2004 Opeating pofit magin 1 aound 23 % in 2006 baing unfoeseen events 1 befoe exceptional items 52 26

27 Appendix 54 27

28 Quately local sales gowth Stong business momentum 2004 vs Q1 Q2 Q3 Phama Roche Rx Genentech Rx Chugai Rx Diagnostics Goup continuing OTC (discontinuing) Vit. & fine chemicals (discontinuing) Goup consolidated until 30 Septembe Top 20 Pesciption poducts Sales YTD Sep '04 (vs. Sep '03) Total CHF m % Local US CHF m % Local J CHF m % Local ROW CHF m % Local MabThea/Rituxan 2, , NeoRecom/Epogin 1, Heceptin 1, Cellcept 1, Rocephin Pegasys Xenical Avastin Xeloda Nutopin/Potopin Kytil Copegus Dilatend Roaccutane Pulmozyme Cymevene/Valcyte Tamiflu Neutogin Activase/TNKase Madopa

29 Sales YTD Sep '04 (vs. Sep '03) Launches since Januay Total CHF m % Local US CHF m % Local J CHF m % Local ROW CHF m % Local Xolai Fuzeon Raptiva Renagel Evista othe than launches aleady coveed in Top Gowth in main egions and theapeutic aeas Phamaceuticals Noth Ameica +24 % 38 % anemia 2 % tansplant +13 % 8 % oncology + 31 % 14 % Japan +7 % viology +66 % 8 % 11% 35 % Euope* +14 % 33 % othes +4 % 23 % 7 % 8 % infectious disease 0 % cadiovascula 4 % Latin Ameica 13 % 9 % 6 % othes +13 % all gowth figues ae in local cuencies * including Easten Euope 58 29

30 Westen Euope Phamaceuticals Japan +7 % Othes +19 % 1 % Switzeland Latin Ameica 13 % Noth Ameica +24 % 6 % 14 % 38 % 12 % 30 % Westen Euope +12 % 5 % 5 % 5 % 3 % 3 % 8 % Fance Gemany Italy Spain UK othe Westen Euope all gowth figues ae in local cuencies 59 Pegasys local makets penetation >50 % in all majo makets China (22 months) Japan (8 months, monotheapy) Bazil (>24 months) Mexico (>24 months) Switzeland (>24 months) Austalia (9 months) Gemany (>24 months) Spain (18 months) Fance (17 months) Italy (14 months) US pesciptions (21 months) UK (>24 months) 50 % Pegasys maket shae % 100 % 82 % 81 % 76 % 73 %* 2 68 % 63 %** 61 % 60 %* 58 % 49 % 0% Pegasys Peg-Inton 100% 1 IMS o local affiliate maket eseach, August 2004 (*July 04,** June 04), Pegylated Intefeon maket, 2 PEGASYS RBV Combination pack shae

31 Pegasys / Copegus US maket penetation 70% 60% 50% 40% 30% 20% 10% 0% 0% Oct '02 US maket shae total scipts (TRx) 1 43% 39% 39% 33% 36% 34% 30% 29% 26% 25% 22% 20% 18% 14% 14% 10% 9% 3% 5% 5% 1% Nov Dec Jan '03 Feb Ma Pegasys Ap May Jun Copegus Jul Aug Sep 52% 54% 56% 57% 57% 58% 58%58% 58% 2 53% 53%53%53% 51% 50% 51% 52% 3 48% 48% 48% 42% Oct Nov Dec Jan '04 Feb Ma Ap May June July Aug 1 IMS Aug '04 2 Pegylated Intefeon maket shae 3 Ribaviin maket shae 61 Rocephin Demand still stong in the US CHF m 1'500 1'250 1' Sales + 2 % 1 Sales stable 1 at CHF 981 million geneic competition impacting especially in Fance and Gemany US: patent potected until July 2005 Italy: patent expied YTD Sep '02 YTD Sep '03 YTD Sep '04 US RoW incl. Japan 1 local gowth 62 31

32 Ou main pimay cae poducts Dilatend Tamiflu Sales 0 % % 1 Dilatend off patent in majo Euopean makets duing 2004 Tamiflu sales of CHF 237 million diven by sales in pandemic planning in counties RoW Xenical -1 % 1 Xenical Euope back to gowth US sales effot e-dimensioned YTD Sep '04 YTD Sep '03 CHF m 1 local gowth 63 Roche managed R&D pipeline - oveview 1 By theapy aea Reseach Development espiatoy genitouinay inflammatoy 5 2 vascula vial CNS 5 espiatoy Inf. diseases anaemia 2 1 inflammatoy genitouinay 5 9 vial metabolic 22 oncology metabolic CNS oncology 112 pojects 68 pojects (42 NME's* and 26 line extensions) * New Molecula Entities pio to egulatoy appoval 1 as of Septembe 30,

33 Nea Patient Testing YTD Sep '04: CHF 409 million (+3 % local gowth*) Blood gas/ Electolytes Coagulation Uinalysis Cadiac makes Refloton othes (inc. DAT) (-5 %) (+17 %) (-3 %) (+10 %) (-3 %) (-7 %) YTD Sep '04 YTD Sep '03 * impacted by OPTI & DAT divestitues in 2003 (undelying gowth +4 %) 65 Applied Science YTD Sep '04: CHF 402 million (+9 % local gowth) Total Genomics (+9 %) Total Poteomics (+5 %) Applications (+25 %) BSE (+8 %) AS Industial Business othe (-74 %) (+24 %) YTD Sep '04 YTD Sep '

34 2004 and 2003 CHF / EUR 1.60 Monthly aveages Jan Feb Ma Ap May Jun Jul Aug Sep Oct Nov Dec 1.60 YTD aveages % +4 % +3 % Jan Feb Ma Ap May Jun Jul Aug Sep Oct Nov Dec and 2003 CHF / USD 1.40 Monthly aveages Jan Feb Ma Ap May Jun Jul Aug Sep Oct Nov Dec 1.40 YTD aveages % -6 % -7 % Jan Feb Ma Ap May Jun Jul Aug Sep Oct Nov Dec 68 34

35 2004 and 2003 Aveage exchange ates YTD YTD YTD 9 '04 vs. YTD 9 '03 9'04 9'03 GBP EUR JPY USD % -5% 0% 5% 10% 69 35