Roche Committed to innovation and profitable growth. FY 2010 results, February 2, 2011 London, New York

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2 Roche Committed to innovation and profitable growth FY 2010 results, February 2, 2011 London, New York 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 2010 Summary Financial guidance fully met Operational Excellence on track Most of the concerned employees individually notified R&D prioritised Divestitures of factories initiated Major progress in Personalised Healthcare Strong late-stage pipeline of 12 NMEs out of which 6 tailored to specific patient groups 5

6 2010: Group sales Solid underlying growth in line with guidance change in % Excluding CHF m CHF m CHF local Tamiflu* Pharmaceuticals Division 38,996 37, Diagnostics Division 10,055 10, Roche Group 49,051 47, * local currency 6

7 2010: Solid growth despite major headwinds CHF bn Tamiflu sales Avastin in breast cancer US sales CHF m Healthcare reforms impact* CHF m bn -125 m -774 m * EU, US and Japan 7

8 Growth rates maintained despite healthcare reforms and austerity measures 2009 vs vs Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Pharmaceuticals Division excl. Tamiflu Diagnostics Division Roche Group excl. Tamiflu

9 2010: Group performance +10% Core EPS growth 1 as guided Change CHF m CHF m % loc % Sales 49,051 47,473-1, Core operating profit 16,272 16, as % of sales Core net income 11,317 11, as % of sales Attributable to Roche shareholders 10,636 10, Core EPS (CHF) at constant exchange rates 9

10 Continuous profit growth and margin improvement Group Core operating profit and margin +2.1%p 1 (+1.7%p) 34.9% % of sales 33.2% % 1 (+2%) 16.6 CHF bn at constant exchange rates 10

11 2010: Continuous increase of pay-out ratio over three years 1 CHF Average yearly dividend growth ( ): 22% % 51.6% Payout ratio 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 As announced in relation to the financial results for 2007 Pay-out ratio calculated as dividend per share divided 2010 Dividend: Proposed by the Board of Directors by core earnings per share (diluted) 1 Pay-out ratio calculated as dividend per share divided compound annual growth rate by earnings (before exceptional items) per share (diluted) 11

12 2010: Goals achieved Sales growth (in LC) Group & Pharma (excl. Tamiflu): mid single-digit Diagnostics: significantly above market 5% 8% Synergies 2010: CHF 800 m 2011: CHF 1,000 m R&D investment Core EPS growth (in LC) Slightly below 2009 level Double-digit 10% Debt 2010: 33% reduction (revised from 25%) 2015: Aim to return to net cash position 3 yr Dividend outlook Maintained (as announced in 2008)* * Continuous increase in dividend pay-out ratio over the period

13 Priorities 2011 Improve Efficiency Implement Operational Excellence as announced Capture remaining synergies from Genentech integration Drive Innovation and Growth Progress late-stage pipeline Prepare launches for potentially three NMEs (BRAF inhibitor, pertuzumab, hedgehog inhibitor) Launch key diagnostic tests (HPV, BRAF, KRAS, EGFR) 2011: Bring personalised healthcare to patients 13

14 A leading pipeline 12 NMEs in late-stage development Number of NMEs Virology CNS Metabolic Inflammation Oncology 10 Glycine reuptake inh aleglitazar taspoglutide dalcetrapib 12 HCV pol inh 1 ocrelizumab MS Glycine reuptake inh aleglitazar dalcetrapib lebrikizumab 1 4 ocrelizumab Hedgehog inh MetMAb 1 Hedgehog inh 2 taspoglutide dalcetrapib BRAF inhibitor T-DM1 BRAF inhibitor T-DM1 ocrelizumab Actemra ocrelizumab pertuzumab GA101 (CLL) pertuzumab GA101 (CLL, NHL) pertuzumab LIP decision made, phase III start pending 14

15 Outlook 2011 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) 15

16 Outlook for 2011 Sales growth (in LC) Genentech synergies Operational Excellence savings Core EPS growth target (in LC) Group & Pharma (excl. Tamiflu): low single-digit Diagnostics: significantly above market : CHF 1.0 bn* 2011 : CHF 1.8 bn : CHF 2.4 bn High single-digit Debt Aim to return to net cash position by 2015 Dividend outlook Grow dividend in-line with Core EPS growth Barring unforeseen events; LC=Local Currency; * vs. 2010: CHF 0.8 bn 16

17 Pharmaceuticals Division Pascal Soriot COO Roche Pharmaceuticals 17

18 2010: Pharma sales - growth maintained despite healthcare reforms and austerity measures change in % Excluding CHF m CHF m CHF local Tamiflu* Pharmaceuticals Division 38,996 37, United States 14,805 14, Western Europe 10,827 9, Japan 4,765 4, International 8,599 9, Quarterly growth rates % in LC vs. prior year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pharmaceuticals Division excl. Tamiflu * local currency 18

19 2010: Impact of Tamiflu and healthcare reforms Strong underlying growth of 7%* from our portfolio CHF m 38,996 ~ CHF 3 bn 37,058 Tamiflu 3,200-2,327 +7% * (+3%) ,163 Tamiflu ,796 Tamiflu ,022 36, Tamiflu HC reforms and Japan price cut 2010 Portfolio growth 2010 * local currency 19

20 Pharma: Oncology, Lucentis and Actemra driving growth, strong performance in emerging markets Avastin MabThera / Rituxan Herceptin Lucentis Actemra / RoActemra Xeloda Mircera Tarceva Valcyte / Cymevene Kytril Neutrogin NeoRecormon / Epogin CellCept US Western Europe Japan International Tamiflu: CHF -2,342 m Absolute amounts in CHF m at 2009 exchange rates; products with growth contribution CHF +/- 50 m; 20

21 2010: Pharma - further productivity improvements Costs controlled on all lines 2010 CHF m % sales Sales 37, vs local growth -2% Royalties & other op inc 1, Cost of sales -7, M & D -6, R & D -8, G & A -1, % -12% -14% -1% -2% COGS & PC 1 : -6% Administration: -12% Core operating profit 14, % 0% in CHF 1 Cost of goods sold & period costs 21

22 2010: Pharma - strong profit margin increase Pharma Core operating profit and margin 38.0% +2.2%p 1 (+1.9%p) 39.9% % of sales +4% 1 (0%) CHF bn 1 at constant exchange rates

23 Oncology sales up 7% in 2010 Major brands CHF bn Avastin MabThera Rituxan Herceptin local growth +9% +9% +7% Japan and Int l: continued strong growth US: mbc impacted by regulatory uncertainty Continued uptake in CLL and strong use in NHL WE: Benefit from uptake in gastric cancer Japan: negative impact of price cuts in April Xeloda +17% Strong growth in key markets: US, Japan, China Tarceva +6% Growth in Int l region, Japan and US Oncology 2010 sales: 21.3 bn

24 Avastin: continued growth Driven by International regions and Japan CHF bn Global sales Regional sales Local growth + 9% 1 US 0% Japan +51% International +31% Western Europe +7% US (Q4 10 penetration rates) 1st line mcrc and Avastin-eligible mnsclc: stable 1st line mbc: further downward trend from ~50% at Q3 10 to ~35% (± 5%) new patient share due to regulatory and reimbursement uncertainty Top 4 EU (Q3 10 penetration rates) 1st line mcrc: stable at ~45%, 1st line mnsclc: ~15%, 1st line mbc: ~35% Japan Continued good uptake in mcrc and mnsclc 1 local growth 24

25 Avastin: opportunities and challenges for 2011 Opportunities Grow market share in mcrc and mnsclc Launch in China (mcrc), continue success in Japan Roll-out of treatment duration program (treatment to progression) Ovarian cancer filings (EU: Dec 2010; US: 2011) Challenges Potential regulatory actions on Avastin mbc label Estimated peak sales: ~ CHF 7 bn 25

26 Lucentis New indications fueling growth, mitigating risk CHF m US sales +27% 1 Growth opportunities AMD: Increase in new patients (~2% per year) and # of injections per patient (currently average of 8 injections in 1 st year and 5 in 2 nd year) Target US population ~215,000 patients RVO: FDA approval in Q2 2010; initial uptake encouraging Target US population ~95,000 patients DME: Phase III data Q Target US population ~205,000 patients Lucentis vs. Avastin in eye care CATT Study Expected early in local currency; AMD = wet age-related macular degeneration; RVO = retinal vein occlusion; DME = diabetic macular edema Genentech, a member of the Roche Group, retains commercial rights in the US and Novartis has exclusive commercial rights for the rest of the world 26

27 Actemra/RoActemra in Rheumatoid Arthritis Successful launch CHF m Q1 08 Q2 08 Actemra/RoActemra quarterly sales Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q sales: CHF 397 m Uptake remains very encouraging In US, Actemra prescribed by nearly 60% of rheumatologists, patient share currently 4-6% following anti-tnfs sjia (systemic juvenile idiopathic arthritis): submitted Q4 10, priority review by FDA and EMA FDA label extension: inhibition and slowing of structural joint damage, improvement of physical function (LITHE study) 27

28 Pharma sales in International region CHF bn CAGR: 10% Tarceva Xeloda CellCept Pegasys Avastin MabThera / Rituxan Herceptin Rest excl. Tamiflu All figures at 2010 exchange rates 28

29 Herceptin in adjuvant use: 1 year of treatment as the standard of care - potential improvement with 2 years Study FPI Recruitment status Data avail. estimate Additional info HERA (Intl. study) 2001 N= year arm= years arm=1701 Fully enrolled months vs. 12 months Shorter treatment duration studies FinHer (Finland) Q Closed Sept HER2+ patients Published weeks vs. no Herceptin No statistical significance PHARE (France) PERSEPHONE (UK) Greek study (HORG) SOLD (Int. Study) ShortHER (Italy) Q Enrollment closed June 2010 Q ~1004/ 4000 Q ~389/ /13 Earliest 2014 Earliest vs. 12 months one sided alpha of 0.05 not registration standard (0.025 required) 6 vs. 12 months 6 vs. 12 months Q ~900/ /15 9 weeks vs. 12 months Q ~650/ 2500? 9 weeks vs. 12 months Sources: FinHer: JCO, 27(34) 2009; clinicaltrials.gov (CT.gov); PHARE protocole d essai clinique 2009; PERSEPHONE website; primary intelligence and Roche estimates 29

30 HER2-positive breast cancer Improving the standard of care 2nd line mbc Xeloda + lapatinib T-DM1 (EMILIA) 1st line mbc Herceptin + chemotherapy Herceptin & pertuzumab + chemotherapy (CLEOPATRA) T-DM1& pertuzumab (MARIANNE) Early (adjuvant) BC Herceptin + chemotherapy Herceptin Subcutaneous + chemotherapy Herceptin & pertuzumab + chemotherapy Timelines refer to the expected dates of first filing 30

31 Biosimilars in Western Europe - limited impact on value even in markets with regulatory pathway 35% EPO market Value 100% G-CSF market Value 30% 25% 20.70% 80% 94.40% 20% 60% 15% 10% 5% 0% EPO Biosimilars Value share EPO Mircera Value share EPO NeoRecormon Value share 7.00% 4.60% 40% 20% 0% G-CSF Biosimilars Value share G-CSF Branded Value share 5.60% 45% Volume 100% Volume 40% 35% 30% 25% 20% 15% 10% 5% EPO Biosimilars Volume share EPO Mircera Volume share EPO NeoRecormon Volume share 27.40% 10.40% 2.90% 80% 60% 40% 20% G-CSF Biosimilars Volume share G-CSF Branded Volume share 86.60% 13.40% 0% 0% Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q Source: IMS PADDS 31

32 Opportunities in emerging markets Large untapped potential for our innovative products Opportunities in emerging markets strong and long-standing presence providing access is key: disease awareness, local clinical trials and training for healthcare professionals specific pricing programmes for individual markets: innovative schemes to provide win-win situation Current penetration (%) Herceptin MabThera oncology China 7% 12% Russia 25% 26% Emerging markets: by 2012 ~ 80% of US market value, more than Western Europe (IMS) 32

33 Growth despite biosimilars HER2 market example 3 New HER2 targeted products 1 Herceptin value assumption post biosimilars launch based on the German EPO market experience Value decline EU and RoW 2 Increased penetration in International markets Pertuzumab T-DM1 Herceptin sub cut. ROW ROW ROW ROW WE WE WE WE US US US US 2010 ~2017 Emerging markets growth New products 33

34 2011: Major clinical news for late-stage NMEs 7 Phase III and 9 Phase II studies Compound Indication Study BRAF inh 1st line met melanoma Ph III BRIM3 Lucentis diabetic macular edema Ph III RIDE; Ph III RISE Avastin relapsed ovarian cancer Ph III OCEANS Pertuzumab + Herceptin 1st line HER2+ mbc Ph III CLEOPATRA Herceptin adj HER2+BC sc Ph III HANNAH Actemra Early RA Ph III Head-to-head against Humira Hedgehog Pathway Inh advanced BCC Ph II pivotal study T-DM1 1st line HER2+ mbc Ph II PFS data GA101 Relapsed indolent NHL Ph II Head-to-Head against MabThera/Rituxan MetMab NSCLC 2nd / 3rd line Ph II final data Lebrikizumab asthma Ph II MILLY Nucleoside Pol Inh Hepatitis C Ph IIb PROPEL final data; JUMP-C Dalcetrapib Atheroclerosis CV risk red. Ph IIb dal-vessel; dal-plaque 34

35 RG7204 for metastatic melanoma meets overall survival endpoint in Phase III Patient Population Second- and Third line Malignant Melanoma BRAF mutation positive First-line Malignant Melanoma BRAF mutation positive Phase/Study Phase II BRIM2 Phase III BRIM3 # of Patients N=132 N=675 Design Single ARM: RG7204 ARM A: RG7204 ARM B: dacarbazine Primary Endpoint Status Best overall response rate assessed by IRC using RECIST criteria Overall survival Presented at Int. Melanoma Congress 2010 FPI Q1 2010; fully recruited in Dec 2010 Met OS and PFS endpoints in Jan 2011 Expect filing in 2011 in US and EU 35

36 Hedgehog pathway inhibitor in basal cell carcinoma Phase I efficacy data RG3616 is efficacious in treating advanced basal cell carcinoma 33 BCC patients treated in Phase I* >50% had a response (IRF assessed) 2 (6.1%) complete response 16 (48.5%) partial response Median duration of response >8.8 months Well-tolerated with reversible, mild adverse events Pivotal phase II data in Q In collaboration with Curis * Von Hoff, et al., New England Journal of Medicine, September

37 Herceptin & pertuzumab in neoadjuvant HER2+ BC An encouraging result from NEOSPHERE trial p = % p = p = pathological complete response 45% 40% 35% 30% 25% 20% 15% 10% 5% 29.0% 45.8% 16.8% 24.0% 0% Herceptin + Herceptin & Herceptin & pertuzumab + docetaxel pertuzumab + pertuzumab docetaxel docetaxel Phase III (CLEOPATRA) data in 1 st line patients and filing in 2011 ITT population summary SABCS

38 Priorities in 2011 Focus on long term growth while managing the short term profitability Prepare for potential launch of BRAF inhibitor, pertuzumab, Hedgehog inhibitor Strengthen investment in emerging markets Continue investment in late-stage pipeline Operational Excellence 38

39 Diagnostics Division Daniel O Day COO Roche Diagnostics 39

40 2010: Diagnostics Division sales Sustained high growth above the market CHF local CHF m CHF m growth growth Professional Diagnostics 4,553 4,858 7% 11% Diabetes Care 2,969 2,959 0% 4% Molecular Diagnostics 1,183 1,189 1% 4% Applied Science % 4% Tissue Diagnostics % 17% Diagnostics Division 10,055 10,415 4% 8% IVD market growth estimated 4-5%

41 2010: Diagnostics Division sales Growth above market in all regions North America 26% Dia sales, +5% EMEA 1 50% Dia sales, +6% Japan 5% Dia sales, +4% Latin America 7% Dia sales, +16% Asia Pacific 12% Dia sales, +20% 1 Europe, Middle East and Africa All growth in local currency IVD market growth estimated 4-5%

42 2010: Diagnostics profit improvement on track Significant profit and margin increase driven by strong sales and tight management of operating expenses 2010 CHF m % sales Sales 10, vs local growth 8% Royalties & other op inc Cost of sales -4, M & D -2, R & D G & A % 4% 4% -2% -4% COGS & PC 1 : +5% Administration: +5% Core operating profit 2, % +26% in CHF 1 Cost of goods sold & period costs 42

43 2010: Diagnostics performance Operating free cash flow increase driven by profit growth 17.3% 1, % +3.6%p 1 (+3.8%p) +30% 1 (+26%) 2, % 15.7% +4.3%p 1 (+4.2%p) +48% 1 (+42%) % of sales 1,152 1,634 CHF m 1 at constant exchange rates Core operating profit Operating free cash flow 43

44 Accelerated delivery of ongoing initiatives for sustainable margin improvement Ongoing operational efficiency programmes manufacturing excellence (COGs) consolidation of services (regional call centres, shared services) active portfolio management Further streamlining of sites (site closures ) Graz Burgdorf Mannheim Blood gas & electrolytes Insulin delivery systems (IDS) R&D IDS manufacturing outsourced Chemical raw material manufacturing Rotkreuz Mannheim Penzberg Enhancing system integration Leveraging existing capacities Reducing infrastructure costs 44

45 Growth driven by Professional Diagnostics and Diabetes Care CHF bn 2010 vs local growth Professional Dia +11% Strong placements of cobas 6000 & 8000 modular analyzers; cobas e 602 module launched; Expanding immunoassay menu Diabetes Care +4% Maltose-independent strip chemistries for Accu-Chek Aviva, Performa, Compact and Mobile commenced roll-out in EU Molecular Dia +4% Strong demand in APAC for virology and cobas 4800 system for CT/NG & HPV; HPV Test under FDA review Applied Science +4% Double-digit increase in sequencing due to GS Junior; Second half impacted by lower demand for H1N1 testing Tissue Dia +17% EMEA North America RoW Growth driven by IHC/ ISH reagents and BenchMark ULTRA; 15 new Abs (IHC) + 6 new probes (ISH) launched EMEA = Europe, Middle East and Africa, APAC = Asia Pacific 45

46 Immunoassays driving sales Ten consecutive years of double-digit growth CHF bn 2.0 Immunoassay sales CAGR 13% c 701/c502 e 602 cobas 8000 series (large-vol) 1.5 cobas 6000 (mid-vol) +17% Strong placements of cobas modular platforms consolidating clinical chemistry & immunoassays Local growth rates to year earlier period Expanding menu HIV combi, HSV-1, HSV-2, Rubella IgM, HAV. HCV free β HCG/ PAPP-A stat NT-proBNP 46

47 New Accu-Chek products driving above-market 1 growth in Diabetes Care CHF bn 3 Diabetes Care sales +4% 2 New product launches 3 ( ) Accu-Chek Aviva Nano & Performa Nano Small, sleek design developed for young, high-frequency testers 2 1 Accu-Chek Mobile Only strip-free system enabling less steps for greater ease of use Total Diabetes Care sales New product sales* Accu-Chek Combo First interactive insulin pump in EU allowing patients to operate pump by meter 1 BG market growth estimated 2% 2 local currency 3 Not available in the US * New product sales includes: Accu-Chek Aviva/ Nano, Accu-Chek Performa/ Nano, Accu-Chek Mobile, Accu-Chek Combo 47

48 Creating medical value and improving patient care Three trials demonstrating the value of diagnostics ATHENA PROTECT STeP Diagnostics HPV (cervical cancer) NT-proBNP (heart failure) Glucose monitoring (diabetes) Companion Diagnostics 47,000 women screened by cobas 4800 HPV Test with 16/18 genotyping 1/10 women 1 positive for HPV 16/18 had cervical precancer although their PAP test was normal 2 NT-proBNP levels used to guide heart failure (HF) therapy Patients experienced significant reduction in total cardiovascular events and HF-related hospitalisations 3 Patients created 7-point BG profiles over 3 consecutive days Therapy decisions based on pattern analysis Patients showed significantly better HbA1c and glycemic control 4 1 >30 years old 2 Wright TC, et al, IPV Montreal, July Januzzi, J., AHA Chicago, November Polonsky et al, Diabetes Care, 34, 2011

49 Creating medical value and improving patient care Six NMEs in late-stage development have PHC approach Diagnostics HER2/3 (Pertuzumab) Met (MetMAb) Periostin (lebrikizumab) Companion Diagnostics HER2 (T-DM1) BRAF V600 (BRAF inh) HCV load, genotype (HCV pol inh) NMEs = new molecular entities PHC = Personalised Healthcare Not all products available in all countries; some products in development 49

50 Acquisitions, collaborations and licensing of IP to strengthen businesses Acquisitions Research & technology collaborations Intellectual Property Semi-disposable micropump for insulin delivery High resolution, whole-slide scanning of tissue samples & algorithms IBM and DNA electronics (sequencing) German Cancer Research Centre (HPV) InterComponentWare (Diabetes Care) EGFR Pl3K p63

51 Key launches for 2011* Professional Diagnostics Diabetes Care Molecular Diagnostics Applied Science Tissue Diagnostics Vitamin D total and HE4 immunoassays (EU) cobas 8000 modular analyzer series, cobas c 702 module (EU, US) 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) HLA genotyping on GS Junior & FLX sequencing systems (global) GS FLX Titanum-XL system (global) Ultra-high resolution CGH arrays (global) ER/PR antibody for IHC (US) HER2 dual colour ISH probe (US) FutureView detection system (US, EU) Diagnostics Division Outlook: Sales growth significantly above the market * Subject to appropriate regulatory approvals barring unforeseen events 51

52 Priorities in 2011 Drive above-market growth Deliver key product launches Drive Personalised Healthcare with Pharma Continue strong growth in emerging markets Further improve profitability 52

53 Group Erich Hunziker Chief Financial Officer 53

54 2010: Goals achieved Sales growth (in LC) Group & Pharma (excl. Tamiflu): mid single-digit Diagnostics: significantly above market 5% 8% Synergies 2010: CHF 800 m 2011: CHF 1,000 m R&D investment Core EPS growth (in LC) Slightly below 2009 level Double-digit 10% Debt 2010: 33% reduction (revised from 25%) 2015: Aim to return to net cash position 3 yr Dividend outlook Maintained (as announced in 2008)* * Continuous increase in dividend pay-out ratio over the period

55 2010: Group results Stable sales, Core EPS growth at 10% CHF m % change CHF local Sales 49,051 47, Core operating profit 16,272 16, % of sales p IFRS operating profit 12,277 13, % of sales p Operating free cash flow 15,722 14, % of sales p Core net financial income -1,668-2, Core tax rate in % p Core net income 11,317 11,181-1 % of sales p Core EPS (CHF) Free cash flow 8,893 4,

56 2010: Group core operating performance Further profit and margin increase 2010 CHF m % sales Sales 47, vs local growth 0% Royalties & other op inc 1, Cost of sales -12, M & D -9, R & D -9, G & A -1, % COGS & PC 1 : -1% -7% Administration: -3% -5% -2% 0% Core operating profit 16, % +2% in CHF 1 Cost of goods sold & period costs 56

57 Group core operating profit and margin Substantial margin increase in both Divisions 33.2% 34.9% +2.1%p 1 (+1.7%p) 38.0% 39.9% +2.2%p 1 (+1.9%p) % of sales 16'272 +7% 1 (+2%) 16'591 14'836 +4% 1 (0%) 14' % 21.1% +3.6%p 1 (+3.8%p) CHF m ' % 1 (+26%) 2'202 1 at constant exchange rates Roche Group Pharma Division Diagnostics Division 57

58 2010: Group operating performance Non-core items Change CHF m CHF m % loc % Sales 49,051 47,473-1, Core operating profit 16,272 16, as % of sales Non-core items -3,995-3, IFRS Operating profit 12,277 13,486 +1, as % of sales Global restructuring Genentech -2, , Operational Excellence Intangible Assets Amortisation Intangible Assets Impairments Alliances & business combinations Legal and environmental Non-core items -3,995-3, Total Operational Excellence costs incl. intangible assets impairments - -1,343-1,343-58

59 2010: Core net financial result Decline driven by early bond redemptions and currency devaluation in Venezuela '000-1' call of USD 2.5 bn notes that were due 1 March 2012 (H1) -108 call of USD 1.0 bn notes that were due 1 March 2014 (H2) -2'272 CHF m -1'500-2'000-2' * '000 Early bond Fx result, Interest Interest All other, Dec 09 redemptions net and debt expense net Dec 10 security income 59 * Includes CHF 9 m in 2009

60 2010: Group cash flow Strong free cash flow reduces net debt by 20% CHF bn Taxes -2.8 Treasury -1.4 Dividends Net debt 31/12/09 Operating Free Cash Flow Non-op. FCF Free Cash Flow Currency translation, fair value & other movements Net debt 31/12/10 60

61 CHF 8.6 bn bond repayments in % of Genentech transaction related debt repaid 100% 75% 50% 25% 0% USD EUR CHF GBP Repayments 2010: USD 3.0 bn and EUR 1.5 bn floating rate notes in Q1 Early redemption of USD 2.5 bn 4.5% notes due 2012 in September (full redemption) USD 0.5 bn Genentech legacy note Of the CHF 48.2 bn bonds and notes issued to finance the Genentech transaction, cumulative 15.7 bn (33%) repaid as of 31 Dec Outlook 2011: USD 0.9 bn floating rate note repayment at maturity in February Early redemption of USD 1.0 bn 5.0% notes due 2014 in March (partial redemption) 1 Original net proceeds in CHF 61

62 Debt maturity profile CHF bn bn called bn on call USD USD GNE EUR GBP CHF Nominal March 09 FX rates 62

63 5 year Credit Default Swap (CDS) Roche vs. Germany Germany 45 bp Roche 39 bp Germany Roche 63

64 Balance sheet 31 December 2010 Equity ratio up from 13% to 19% CHF bn Cash and marketable securities Other current assets % 27% % % Current liabilities % % Non-current liabilities % % Non-current assets % % Equity (Net assets) % % Assets Equity & liabilities 64

65 Outlook for 2011 Sales growth (in LC) Genentech synergies Operational Excellence savings Core EPS growth target (in LC) Group & Pharma (excl. Tamiflu): low single-digit Diagnostics: significantly above market : CHF 1.0 bn* 2011 : CHF 1.8 bn : CHF 2.4 bn High single-digit Debt Aim to return to net cash position by 2015 Dividend outlook Grow dividend in-line with Core EPS growth Barring unforeseen events; LC=Local Currency; * vs. 2010: CHF 0.8 bn 65

66 66

67 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 2010 sales Diagnostics Foreign exchange rate information 67

68 Roche Group R&D Pipeline today phase I (36 NMEs) phase II (18 NMEs + 8 Als) phase III (8 NMEs + 25 Als) Registration (6 Als) RG3639 RG7256 RG7112 RG7160 RG7167 RG7304 RG7321 RG7334 RG7414 RG7420 RG7421 RG7422 RG7440 RG7444 RG7459 RG7593 RG7594 RG7597 RG7686 CHU CHU RG4934 RG7185 RG7413 RG7432 CHU RG4929 RG7236 RG7273 RG7418 RG7685 RG1578 RG1662 RG7166 RG7412 RG7417 dulanermin cancer BRaf inh(2) BRAF mutated melanoma MDM2 ant (2) solid & hem tumors EGFR Mab solid tumors CIF/MEK inh solid tumors Raf & MEK dual inh solid tumors PI3 kinase inh solid tumors anti-plgf Mab solid tumors anti-egfl7 Mab solid tumors MEK inh solid tumors MEK inh solid tumors PI3 K/mTOR inh solid&hem tumors AKT inhibitor solid tumors FGFR3 Mab multiple myeloma IAP ant (2) solid tumors& lymphoma CD22 Mab ADC hem. malignancies antiangiogenic solid tumors anti-her3 Mab m. epithelial tumors anti-glypican Mab liver cancer ALK inhibitor NSCLC - solid tumors anti-il-17 Mab RA CRTH2 antag asthma Mab Beta7 ulcerative colitis nucleoside pol inh (9) HCV serine palmitoyltransf inh HCV 11 beta HSD inh metabolic diseases Cat S antag CV risk in CKD ABCA1 inducer dyslipidemia anti-oxldl Mab sec prev CV events GIP/GLP-1 dual ago type 2 diabetes mglur2 antag (2) depression GABA-A a5 inv ago cogn. disorders triple reuptake inh depression anti-abeta Mab Alzheimer s anti-factor D Mab geographic atrophy RG1273 pertuzumab HER2+ EBC RG1273 pertuzumab HER2+ mbc 2 nd line RG3502 T-DM1 HER2+ EBC RG3616 hedgehog path inh advanced BBC RG3616 hedgehog path inh operable BCC RG3638 MetMab mnsclc RG7159 GA101 anti-cd 20 Mab NHL & CLL RG7204 BRaf inh met. melanoma 2nd/3rd l.ine RG7433 navitoclax (ABT-263) sol & hem tumors CHU topoisomerase I inh gastric cancer RG lebrikizumab (anti-il13) asthma RG4930 OX40L Mab asthma RG7415 rontalizumab (IFN alpha Mab) SLE RG7416 anti-lt alpha Mab RA RG3648 Xolair chronic idiopathic urticaria RG7449 RG3484 RG7128 RG7227 RG1512 RG RG1450 RG1594 RG3487 RG7090 EVO anti-m1 prime Mab HPV16 1 LIP transition approved 2 Ph3 in Japan 3 Complete response in the US 4 FPI Feb 2011 cervical neoplasia nucleoside polymerase inh. HCV danoprevir P selectin Mab SGLT2 inh ocrelizumab nic alpha7 (protease inh) HCV type 2 diabetes gantenerumab (A-beta) Alzheimer s Alzheimer s mglur5 antag (2) TRD NMDA receptor antag asthma CVD RRMS TRD RG105 RG105 3 RG435 RG435 RG435 RG435 RG435 RG435 RG435 RG435 RG435 RG435 3 RG597 RG597 RG1273 RG1415 RG1415 RG3502 RG3502 RG7159 RG7159 RG7204 RG1569 RG1569 RG1569 RG1569 RG1439 RG1658 RG RG1678 RG1678 RG3645 RG3645 Rituxan MabThera Avastin NHL fast infusion HER2+ BC adj Avastin mbc combo Herceptin 1 st line Avastin Avastin Avastin NSCLC adj HER2- BC adj Avastin relapsed ovarian ca Avastin Avastin Avastin Avastin pertuzumab aleglitazar triple neg BC adj high risk carcinoid glioblastoma 1 st line Herceptin HER2+ BC sub cut. Herceptin Tarceva Tarceva T-DM1 T-DM1 GA101 anti-cd 20 Mab GA101 anti-cd 20 Mab BRaf inh CV risk reduction in T2D dalcetrapib atherosclerosis CV risk red. GRI schizophrenia negative sympt. Lucentis Lucentis NHL sc formulation mcrc TML HER2+ adj BC (2yrs) HER2+ mbc 1 st line NSCLC adj NSCLC EGFR mut 1 st line HER2+ mbc 1 st line HER2+ advanced mbc CLL inhl met. melanoma 1st line Actemra ankylosing spondylitis Actemra sc formulation RA Actemra early RA Actemra RA DMARD IR H2H ocrelizumab GRI mbc 2 nd line PPMS schizophrenia subopt control diabetic macular edema AMD high dose RG435* RG435* RG1415* RG105** RG1569 CHU * in the EU ** in the US Avastin ovarian cancer 1 st line Avastin mbc combo Xeloda 1 s t line Tarceva NSCLC EGFR mut 1 st line Rituxan ANCA assoc vascul Actemra sjia EPOCH chemo induced anemia NME Additional Indication Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology Others RG-No Roche Genentech managed CHU Chugai managed EVO Evotec RG105 MabThera is branded as Rituxan in US and Japan RG1569 Actemra is branded as RoActemra in EU 68 Status as of December 31, 2010

69 Changes of the development pipeline since November 10 (last pipeline update) New to Phase I New to Phase II New to Phase III New to Registration Transitioned from Ph0 RG7236 Cat S antag. CV risk reduction in CKD New NME in Ph1 RG7685 GIP/GLP-1 dual agonist in T2D (Marcadia acquisition) RG7686 anti-glypican Mab in HCC (opted in from Chugai) Added by Chugai ALK inhibitor in NSCLC Unnamed molecule solid tumors New NMEs in Ph2 RG7449 anti-m1 prime Mab in asthma RG1512 P-selectin humab in PVD RG1450 gantenerumab in AD New Ph3 trial (1NME) RG1594 ocrelizumab in PPMS New Ph3 trials (2AIs) RG105 MabThera SC in oncology RG1678 GRI in Schizophrenia suboptimally controlled Transitioned from Ph3 (1AI) Avastin ovarian cancer following NDA submission in EU Removed from Phase I Removed from Phase II Removed from Phase III Removed from Reg. Discontinuation (2NMEs) RG7348 nucleoside analogue in HCV RG7347 anti-nrp1 in solid tumors Reverted to Partner (1NME) RG7426 BHT-3021 in T1D Outlicensing candidate RG667 palavarotene in emphysema Returned to Ipsen (1NME) RG1583 taspoglutide in T2D Removed following FDA decision Avastin mbc combo docetaxel Avastin mbc 2nd line (following FDA complete response) Rituxan inhl 1st line maintenance Removed following approval in Japan Edirol osteoporosis 69

70 Projected NME submissions and their additional indications Projects currently in Phase 2 and 3 GA101 (RG7159) NHL MetMab (RG3638) mnsclc anti-lt alpha Mab (RG7416) rheumatoid arthritis danoprevir (HCV protease inh RG7227) navitoclax ABT-263 (RG7433) solid & hem tumors HPV16 (RG3484) cervical neoplasia T-DM1 (RG3502) HER2+ mbc 1st line aleglitazar CV risk reduction in T2D pertuzumab HER2+EBC SGLT2 inh (RG7201) type 2 diabetes Hedgehog path inh (RG3616) operable basal cell ca P selectin humab (RG1512) CVD GA101 (RG7159) CLL rontalizumab (anti IFN alpha) SLE gantenerumab (RG1450) Alzheimer s disease pertuzumab HER2+ mbc1st line nucleoside polymerase inh (RG7128) HCV OX40L humab (RG4930) asthma mglur5 antag (2) (RG7090) Txt resistant depression BRAF inh (RG7204) met. melanoma dalcetrapib atherosclerosis CV risk red. lebrikizumab (IL-13) asthma alpha7 nic ago (RG3487) Alzheimer s disease Hedgehog inh (RG3616) advanced basal cell ca T-DM1 (RG3502) HER 2+ advanced mbc glycine reuptake inhib. (RG1678) schizophrenia# anti-m1 prime Mab (RG7449) asthma Post Post ocrelizumab PPMS and RRMS Unless stated otherwise, submissions are planned to occur in US and EU. # negative symptoms and sub-optimal control. Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology NME 70 Status as of December 31, 2010

71 Projected additional indications submissions of existing products Projects currently in Phase 2 and 3 Avastin HER2+ BC adj Avastin mcrc TML Avastin triple negative BC adj Avastin mbc 2 nd line (EU) Herceptin sc formulation HER2+ Avastin glioblastoma 1 st line Rituxan NHL faster infusion (US) Avastin + Herceptin HER2+ mbc 1 st line Herceptin HER 2+ BC adj 2 years Tarceva (EU) NSCLC EGFR mutation 1 st line Avastin ovarian cancer 1 st line (US) MabThera sc formulation (EU) Xolair (US) chronic idiopathic urticaria Avastin ovarian cancer 1 st line (EU) Avastin relapsed ovarian cancer Actemra ankylosing spondylitis Actemra early RA Avastin HER 2- BC adj Actemra sjia Tarceva (US) NSCLC EGFR mutation 1 st line Actemra RA DMARD H2H (EU) Actemra sc formulation (US) Avastin NSCLC adj Rituxan ANCA assoc vasculitis (US) Lucentis diabetic macular edema (US) Actemra sc formulation (EU) Lucentis AMD high dose (US) Tarceva NSCLC adj Post 2013 Unless stated otherwise, submissions are planned to occur in US and EU. indicates a submission which has occurred with regulatory action pending Registration based on published data. Oncology Inflammation/Immunology Virology Metabolic/Cardiovascular CNS Ophthalmology 71 Status as of December 31, 2010

72 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 2010 sales Diagnostics Foreign exchange rate information 72

73 Avastin Breast cancer development programme Patient population First-line HER2-negative Second-line HER2-negative First-line HER2-positive Phase/study Phase III RIBBON-1 Phase III AVADO Phase III RIBBON-2 Phase III AVEREL # of patients N=1,238 N=736 N=684 N=410 Design ARM A: Anthracycline or taxane plus Avastin OR Xeloda plus Avastin ARM B: Anthracycline or taxane plus placebo OR Xeloda plus placebo Avastin dose 10 mg/kg q2 weeks or 15 mg/kg q3 wks Primary endpoint Status Progression-free survival (PFS) EMA - CHMP recommends against a label extension with Xeloda FDA - Received Complete Response Letter Q ARM A: Placebo plus docetaxel ARM B: 7.5 mg/kg dose of Avastin plus docetaxel ARM C: 15 mg/kg dose of Avastin plus docetaxel 15 mg/kg or 7.5 mg/kg q3 weeks ARM A: Chemotherapy (taxane, Xeloda, gemcitabine, or vinorelbine) plus Avastin ARM B: Chemotherapy plus placebo 15 mg/kg q3 weeks ARM A: Docetaxel plus Herceptin ARM B: Docetaxel plus Herceptin plus Avastin 15 mg/kg q3 weeks Progression-free survival Progression-free survival Progression-free survival EMA - CHMP recommends removal of the combination of Avastin plus docetaxel from the label FDA - Received Complete Response Letter Q EMA - submission gated on RIBBON-1 procedure completion FDA - Received Complete Response Letter Q FPI Q Enrolment completed Q Expect data 2011 The EMA has confirmed that Avastin in combination with paclitaxel has been convincingly shown to enable women with metastatic breast cancer to live longer without their disease getting worse (PFS). Paclitaxel is the chemotherapy most frequently used in Europe and also most frequently partnered with Avastin for the first-line treatment of metastatic breast cancer. Genentech has submitted a request for an FDA hearing and has submitted its response to the FDA's Notice of Opportunity for a Hearing ("NOOH") on the Agency's proposal to withdraw approval of the metastatic breast cancer indication for Avastin in the United States. 73

74 Avastin Ovarian cancer clinical development programme Patient population Phase/study Phase III GOG-0218 Front-line metastatic ovarian cancer Phase III ICON7 Relapsed platinum-sensitive ovarian cancer Phase III OCEANS # of patients N=1,873 N=1,528 N=484 Design ARM A: Paclitaxel and carboplatin for 6 cycles plus 5 cycles of concurrent placebo followed by placebo alone for up to 22 cycles (15 months) ARM B: Paclitaxel and carboplatin for 6 cycles plus 5 cycles of concurrent Avastin followed by placebo alone for up to 22 cycles (15 months) ARM C: Paclitaxel and carboplatin for 6 cycles plus 5 cycles of concurrent Avastin followed by Avastin alone for up to 22 cycles (15 months) ARM A: Paclitaxel and carboplatin for 6 cycles ARM B: Paclitaxel and carboplatin plus concurrent Avastin for 6 cycles followed by Avastin alone for up to 18 cycles (12 months) ARM A: Carboplatin, gemcitabine, and concurrent placebo for 6 cycles, followed by placebo alone until disease progression ARM B: Carboplatin, gemcitabine, and concurrent Avastin for 6 cycles, followed by Avastin alone until disease progression. Avastin dose 15 mg/kg q3 weeks 7.5 mg/kg q3 weeks 15 mg/kg q3 weeks Primary endpoint Status Progression-free survival Progression-free survival Progression-free survival Study met its primary endpoint with prolonged administration of Avastin (ARM C) Q Data presented at ASCO 2010 EMA submission Q Expect FDA submission 2011 Study met its primary endpoint Q Data presented at ESMO 2010 ASCO = American Society of Clinical Oncology; ESMO = European Society for Medical Oncology. Enrolment completed Q Expect data

75 Avastin Clinical development programmes in other tumor types Patient population Metastatic colorectal cancer High risk carcinoid Newly diagnosed glioblastoma Phase/study Phase III ML18147 Treatment through Multiple Lines Phase III SWOG SO518 Phase III AVAglio # of patients N=810 N=284* N=920 Design 1 st -line treatment with chemotherapy* plus Avastin Once patients progress, they are randomised to: ARM A: Chemotherapy* alone ARM B: Chemotherapy* + Avastin * Physician s choice ARM A: Depot octreotide plus interferon alpha ARM B: Depot octreotide plus Avastin ARM A: Concurrent radiation and temozolomide plus placebo; followed by maintenance temozolomide plus placebo for 6 cycles; then placebo monotherapy until disease progression ARM B: Concurrent radiation and temozolomide plus Avastin; followed by maintenance temozolomide plus Avastin for 6 cycles; then Avastin (15mg/kg q3 weeks) monotherapy until disease progression Avastin dose 5 mg/kg q2 weeks or 7.5 mg/kg q3 weeks 15 mg/kg q3 weeks 10 mg/kg q2 weeks or 15 mg/kg q3 weeks Primary endpoint Overall survival Progression-free survival Overall survival Progression-free survival Status FPI Q Enrolment completed Q Expect data Q FPI Q *Protocol being amended; sample size to increase FPI Q

76 Avastin Adjuvant clinical development programme Patient population Phase/study Adjuvant lung cancer Phase III ECOG 1505 Phase III ECOG 5103 HER2-negative Adjuvant breast cancer Phase III BEATRICE Triple-negative Phase III BETH HER2-positive # of patients N=1,500 N=4,950 N=2,530 N=3,600 Design ARM A: Cisplatin plus vinorelbine, docetaxel, gemcitabine or pemetrexed ARM B: Cisplatin plus vinorelbine, docetaxel, gemcitabine or pemetrexed plus Avastin up to 12 months ARM A: Anthracycline plus cyclophosphamide (AC) followed by paclitaxel ARM B: AC plus Avastin followed by paclitaxel plus Avastin ARM C: AC plus Avastin followed by paclitaxel plus Avastin, followed by Avastin up to 12 months ARM A: Anthracycline ± taxane or taxane-based chemo alone ARM B: Anthracycline ± taxane or taxane-based chemo plus Avastin for 1 year Avastin dose 15 mg/kg q3 weeks 15 mg/kg q3 weeks Dosing equivalent to 5 mg/kg/w Primary endpoint COHORT 1: Docetaxel/ carboplatin plus Herceptin ± Avastin COHORT 2: Docetaxel plus Herceptin ± Avastin, followed by 5-Fluorouracil, Epirubicin, Cyclophosphamide For both cohorts, patients receive Herceptin ± Avastin to complete one year of targeted therapy 15 mg/kg q3 weeks Overall survival Disease-free survival Disease-free survival Disease-free survival Status FPI Q FPI Q Expect to complete enrolment Q FPI Q Enrolment completed Q FPI Q Enrolment completed Q

77 Herceptin The standard of care for HER2+ early and mbc; advancing care for HER2+ advanced gastric cancer Patient population Adjuvant HER2-positive breast cancer Advanced HER2-positive gastric cancer (Adenocarcinoma of the stomach or GEJ) Early-stage HER2-positive breast cancer Phase/study Phase III HERA Phase III ToGA Phase III HANNAH # of patients N=5,102 N=584 N=595 Design Primary endpoint Status ARM A: Herceptin for 12 months ARM B: Herceptin for 24 months ARM C: Observation ARM A: Xeloda or 5-FU 1 and cisplatin ARM B: Xeloda or 5-FU 1 and cisplatin plus Herceptin ARM A: Chemotherapy* concurrent with Herceptin subcutaneous for every three weeks for the first 8 cycles ARM B: Chemotherapy* concurrent with Herceptin intravenous for every three weeks for the first 8 cycles *Chemotherapy = docetaxel then 5-FU, epirubicin, and cyclophosphamide Disease-free survival Overall survival Serum concentration Pathologic complete response Final 2-year versus 1-year analysis expected in 2012; event-driven Received EMA approval Q Received FDA approval Q FPI Q Enrolment completed Q Expect data end of Xeloda or 5-fluorouracil at investigator s discretion. GEJ = Gastro-oesophageal Junction 77

78 MabThera/Rituxan Development programmes Patient population Phase/study Front-line follicular non- Hodgkin s lymphoma Phase III Subcutaneous study Study being conducted ex-us # of patients N=405 Design Primary endpoint ARM A: Intravenous MabThera plus chemotherapy (CHOP or CVP) ARM B: Subcutaneous MabThera plus chemotherapy (CHOP or CVP) Responders will continue on maintenance every 8 weeks over 24 months Pharmacokinetics, safety and efficacy Oncology Maintenance treatment for first-line advanced follicular lymphoma Phase III PRIMA* N=1,217 induction N=1,018 maintenance Physician s choice of three chemotherapies plus MabThera/Rituxan, followed by: ARM A: Maintenance regimen of MabThera/Rituxan for responders every 8 weeks over 24 months ARM B: Observation Progression-free survival Status Expect FPI Q EMA approval Q FDA approval January 2011 Front-line diffuse large B-cell or follicular non-hodgkin s lymphoma Phase IIIb RATE* Faster infusion study Immunology ANCA-associated vasculitis Phase II/III RAVE* N=450 N=197 Prospective, open-label, single arm study To determine the incidence of Grade 3 or 4 infusion-related toxicities resulting from faster infusion of MabThera/Rituxan FPI Q Enrolment completed Q Expect data H Non-inferiority efficacy and safety study of MabThera/Rituxan and glucocorticoids versus conventional therapy (cyclophosphamide) Induction of complete remission at 6 months, defined as a BVAS/WG of 0 and off glucocorticoid therapy Data presented at ACR 2009 US sbla submission Q *In collaboration with Biogen Idec CHOP = Cyclophosphamide, Doxorubicin, Vincristine and Prednisolone; CVP = Cyclophosphamide, Vincristine and Prednisolone. 78

79 Tarceva New approaches to treating lung cancer Patient population Phase/study # of patients Design Primary endpoint Adjuvant non-small cell lung cancer Phase III RADIANT N=974 (2:1 randomisation) Following surgical resection ± adjuvant chemotherapy: ARM A: Tarceva up to 2 years ARM B: Placebo up to 2 years Disease-free survival EGFR IHC and/or FISH-positive Status Enrolment completed Q Expect final results in 2013 First-line metastatic non-small cell lung cancer EGFR mutation-positive* Phase III EURTAC First-Line metastatic non-small cell lung cancer EGFR mutation-positive* Phase III OPTIMAL Study conducted in China N=174 N=165 ARM A: Tarceva ARM B: Chemotherapy (platinum-based doublet) Progression-free survival Study met its primary endpoint Q Expect FDA snda submission in 2011 ARM A: Tarceva ARM B: Gemcitabine and carboplatin Progression-free survival Positive data presented at ESMO 2010 *In Q we submitted an application to the EMA to extend the label for Tarceva to include patients with first-line mnsclc with EGFR activating mutations. The submission was based on published data. Data from the Phase III OPTIMAL study shared with the EMA. In collaboration with OSI Pharmaceuticals, now part of Astellas group of companies in the US. 79

80 Actemra/RoActemra Interleukin 6 receptor inhibitor Rheumatoid arthritis programme Patient population Early moderate-to-severe rheumatoid arthritis Rheumatoid arthritis DMARD inadequate responders Moderate-to-severe rheumatoid arthritis Moderate-to-severe rheumatoid arthritis Phase/study Phase III FUNCTION Phase III ADACTA Head-to-head study Phase III SUMMACTA Subcutaneous study Phase III BREVACTA Subcutaneous study # of patients N=1,128 N=300 N=1,200 N=600 Design ARM A: Actemra 8 mg/kg ARM B: Actemra 8 mg/kg plus MTX ARM C: Actemra 4 mg/kg plus MTX ARM D: MTX alone ARM A: Actemra ARM B: Humira Add-on to DMARD therapy Weekly dosing ARM A: Subcutaneous Actemra plus intravenous placebo ARM B: Intravenous Actemra plus subcutaneous placebo Add-on to DMARD therapy Dosing every two weeks ARM A: Subcutaneous Actemra ARM B: Subcutaneous placebo Primary endpoint DAS28 remission at 24 weeks DAS28 at 24 weeks ACR 20 at week 24 ACR 20 at week 24 Status FPI Q FPI Q Expect data late 2011 FPI Q Expect data 2012 Expect FPI Q In collaboration with Chugai MTX = Methotrexate; DMARD = Disease-Modifying Anti-Rheumatic Drugs. Humira (adalimumab) is a registered trademark of Abbott Laboratories. 80

81 Actemra/RoActemra Interleukin 6 receptor inhibitor Additional phase III programmes Patient population Systemic juvenile idiopathic arthritis (sjia) Ankylosing spondylitis NSAID failures and TNF-naive Ankylosing spondylitis TNF inadequate responders Phase/study Phase III TENDER Phase III BUILDER 1 Phase III BUILDER 2 # of patients N=108 N=502 N=250 Design Primary endpoint ARM A: Actemra 8 mg/kg and 12 mg/kg every 2 weeks for 12 weeks (dosed by body weight) ARM B: Placebo for 12 weeks Reduction in signs and symptoms plus absence of fever Status FDA and EMA submissions Q FDA and EMA granted accelerated review PART 1: ARM A: Actemra 8 mg/kg for 12 weeks ARM B: Placebo for 12 weeks PART 2: ARM C: Actemra 8 mg/kg for 24 weeks ARM D: Actemra 4 mg/kg for 24 weeks ARM E: Placebo for 24 weeks ARM A: Actemra 8 mg/kg ARM B: Actemra 4 mg/kg ARM C: Placebo ASAS20 at week 12 ASAS20 at week 12 FPI Q FPI Q In collaboration with Chugai EULAR = European League Against Rheumatism; ACR = American College of Rheumatology; TNF = Tumor Necrosis Factor; ASAS = Ankylosing Spondylitis Assessment Score; NSAID = Non-Steroidal Anti-Inflammatory Drugs. 81