This spreadsheet was prepared by Michael J. Schill, Robert F. Vandell Research Associate Professor of Business Administration. Copyright
2011 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries,
send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, posted
to the Internet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the
permission of the Darden School Foundation.
Rev. Oct. 5, 2012
Exhibit 1
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
2008 Revenue Breakdown
(sales in millions of Swiss francs)
By Geography
North America
Western Europe
CEMAI1
Japan
Latin America
Asia-Pacific
Others
Share
41%
29%
9%
9%
6%
5%
1%
By Therapeutic Category
Oncology
Share
55%
9%
3%
3%
8%
1%
3%
9%
4%
3%
2%
Product (Indication)
MabThera/Rituxin (lymphoma, leukemia, rheumatoid
arthritis)
Avastin (colorectal, breast, lung, and kidney cancer)
Herceptin (breast cancer)
CellCept (transplantation)
NeoRecormon/Epogin (anemia)
Peasys (hepatitis)
Tarceva (lung cancer, pancreatic cancer)
Lucentis (macular degeneration)
Tamiflu (influenza)
Xolair (asthma)
Valcyte/Cymevene (herpes)
Xenical (weight loss and control)
Pulmozyme (cystic fibrosis)
Nutropin (growth hormone deficiency)
Neutrogin (neutropenia associated with chemotherapy)
Rocephin (bacterial infections)
Activase, TNKase (heart attack)
Madopar (Parkinsons disease)
ION
Sales
5,923
5,207
5,092
2,099
1,774
1,635
1,215
960
609
560
553
502
496
413
404
344
342
311
Exhibit 2
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Financial Statements for Roche Holdings, Financial Years Ended December 31 (in millions of Swiss
francs)
Income Statement
2004
2005
2006
2007
2008
Revenue
COGS
Gross margin
31,092
7,718
23,374
36,958
9,270
27,688
43,432
13,096
30,336
48,376
13,738
34,638
47,904
13,605
34,299
Operating expense
Sales and marketing
Research and development
Other operating
Operating income
10,423
5,154
1,572
6,225
11,816
5,672
1,011
9,189
11,588
7,286
0
11,462
11,576
8,327
0
14,735
11,317
8,720
0
14,262
311
(742)
(443)
(791)
(488)
(677)
769
(682)
222
589
Income tax
Minority interest
Net income
1,865
-457
6,606
2,284
-943
5,923
3,436
-1,291
7,880
3,867
-1,676
9,761
3,317
-1,875
8,969
Balance sheet
Total cash and ST investments
Total other current assets
Net PP&E
Other noncurrent assets
Total assets
12,999
16,680
12,408
16,359
58,446
20,885
14,741
15,097
18,472
69,195
24,996
15,899
16,417
17,102
74,414
24,802
18,032
17,832
17,699
78,365
21,438
17,166
18,190
19,295
76,089
10,134
7,077
0
13,237
30,448
9,492
9,322
183
16,864
35,861
12,692
6,191
163
15,924
34,970
14,454
3,831
243
14,354
32,882
12,104
2,971
174
16,361
31,610
Common stock
Retained earnings
Treasury stock
Comprehensive inc. and other
Total shareholder equity
160
35,960
-4,326
-3,796
27,998
160
38,624
-3,485
-1,965
33,334
160
44,251
-2,102
-2,865
39,444
160
50,922
-1,017
-4,582
45,483
160
52,081
-7,762
44,479
58,446
69,195
74,414
78,365
76,089
Exhibit 3
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Financial Statements for Genentech, Financial Years Ended December 31 (in millions of U.S. dollars)
Income statement
2004
2005
2006
Revenue
COGS
Gross margin
4,621
805
3,816
6,633
1,155
5,478
Operating expense
Sales and marketing
Research and development
Other operating
Operating income
1,088
816
739
1,173
1,435
1,118
946
1,979
2,014
1,588
1,110
3,206
2,256
2,250
1,212
4,239
2,405
2,573
1,400
5,069
(83)
(93)
(156)
(224)
(75)
Other nonoperating
expenses (income)
36
59
(35)
38
(286)
Income tax
Minority interest
Net income
435
0
785
734
0
1,279
1,290
0
2,107
1,657
0
2,768
2,004
0
3,426
2007
2008
Balance sheet
Total cash and ST investments
Total other current assets
Net PP&E
Other noncurrent assets
Total assets
1,238
412
268
703
2,621
Common stock
Additional paid in capital
Retained earnings
Comprehensive inc. and other
1,660
2,083
220
714
4,677
2,010
2,204
199
951
5,364
3,918
2,402
418
297
7,035
3,095
2,329
444
248
6,116
21
21
21
21
21
8,003 9,263 10,091 10,695 12,044
(1,533) (2,067)
(838)
992 3,482
291
253
204
197
124
6,782
7,470
Exhibit 4
ROCHE HOLDINGS LTD.: FUNDING THE GENENTECH ACQUISITION
Stock Price Performance of Roche and Genentech, February 2007 to February 2009
(in Swiss francs and U.S. dollars, respectively)1
12
250
200160
140
10
200
160
120
8
150
120
100
80
Genentech,
Inc.Inc.
Share
Price
(USD)
Genentech,
Share
Price
($)
100
80
60
4
40
50
2
40
20
00
0 0
Jun-07
Feb-08
Oct-08
Jun-07 Feb-08 Oct-08
Feb-07 Oct-07
Feb-07
Oct-07 Jun-08
Jun-08Feb-09
Feb-09
Roche Holding AG (SWX:ROG)
Source: Capital .
Correspondence of values between axes is approximate, based on exchange rates on February 28, 2007. The average rate for
the period was USD1.13/CHF1.00.
1
230.6
86.94
2/21/2007
228.1
87.74
2/22/2007
2/23/2007
2/26/2007
2/27/2007
2/28/2007
3/1/2007
3/2/2007
3/5/2007
3/6/2007
3/7/2007
3/8/2007
3/9/2007
3/12/2007
3/13/2007
3/14/2007
3/15/2007
3/16/2007
3/19/2007
3/20/2007
3/21/2007
3/22/2007
3/23/2007
3/26/2007
3/27/2007
3/28/2007
3/29/2007
3/30/2007
4/2/2007
4/3/2007
4/4/2007
4/5/2007
4/6/2007
224.3
224.4
222.5
218
217.4
217.2
217.3
214.1
216
218.2
216.2
215.6
214.5
213
208.5
210.2
211.6
213.7
215.8
218
222.2
219.3
219
217.8
214.2
217.1
215
215.4
218.5
218.1
220.8
220.8
85.51
85.49
85.75
84.2
84.41
83.59
82.79
81.66
82.28
81.79
81.14
81.58
81.5
81.3
80.92
80.75
81.48
82.78
83.91
84.9
85.28
82.56
83.07
82.55
82.05
81.59
82.12
82.6
83.02
83
83.4
83.4
4/9/2007
4/10/2007
4/11/2007
4/12/2007
4/13/2007
4/16/2007
4/17/2007
4/18/2007
4/19/2007
4/20/2007
4/23/2007
4/24/2007
4/25/2007
4/26/2007
4/27/2007
4/30/2007
5/1/2007
220.8
222.9
222.6
221
221
221
223
229.1
231.5
234.4
234.9
231.5
233.4
232.3
229.5
228.2
228.2
82.64
82.56
82.69
81.63
81.33
81.17
82.37
82.09
82.37
82.4
82
81.6
81.4
81.02
81.32
79.99
82.31
5/2/2007
5/3/2007
5/4/2007
5/7/2007
5/8/2007
5/9/2007
5/10/2007
5/11/2007
5/14/2007
5/15/2007
5/16/2007
5/17/2007
5/18/2007
5/21/2007
5/22/2007
5/23/2007
5/24/2007
5/25/2007
5/28/2007
5/29/2007
5/30/2007
5/31/2007
6/1/2007
6/4/2007
6/5/2007
6/6/2007
6/7/2007
6/8/2007
6/11/2007
6/12/2007
6/13/2007
6/14/2007
6/15/2007
6/18/2007
6/19/2007
6/20/2007
6/21/2007
6/22/2007
6/25/2007
6/26/2007
6/27/2007
6/28/2007
6/29/2007
7/2/2007
7/3/2007
7/4/2007
7/5/2007
7/6/2007
7/9/2007
7/10/2007
7/11/2007
7/12/2007
7/13/2007
229.2
228.7
233
232
230.5
229.8
228.4
228.2
226.8
228.8
227
227
227.6
227.3
226.7
226.8
225.3
227.2
227.2
226.4
225.5
224.8
227.5
225.1
222.6
220.7
217.2
217.4
218
217.2
216.3
218.3
220
218.6
217.5
216.4
213.5
212.1
211.9
211.3
211.8
214.7
217.4
216.8
217.7
219.7
217.3
218.9
219.3
218.3
216.5
216.2
216.6
82.13
81.55
81.42
80.51
80.6
80.57
79.56
80.14
80
78.16
78.53
77.46
77.28
77.17
78.37
77.66
77.64
77.54
77.54
79.06
78.74
79.77
79.5
77.95
77.49
75.9
74.901
76.97
76.89
76.24
76.38
76.25
77
76.83
76.45
75.4
75.97
74.83
73.95
72.6
74.34
75.63
75.66
76.32
76.79
76.79
76.7
75.1
75.76
74.85
75.93
75.26
75.5
7/16/2007
7/17/2007
7/18/2007
7/19/2007
7/20/2007
7/23/2007
7/24/2007
7/25/2007
7/26/2007
7/27/2007
7/30/2007
7/31/2007
8/1/2007
8/2/2007
8/3/2007
8/6/2007
8/7/2007
8/8/2007
8/9/2007
8/10/2007
8/13/2007
8/14/2007
8/15/2007
8/16/2007
8/17/2007
8/20/2007
8/21/2007
8/22/2007
8/23/2007
8/24/2007
8/27/2007
8/28/2007
8/29/2007
8/30/2007
8/31/2007
9/3/2007
9/4/2007
9/5/2007
9/6/2007
9/7/2007
9/10/2007
9/11/2007
9/12/2007
9/13/2007
9/14/2007
9/17/2007
9/18/2007
9/19/2007
9/20/2007
9/21/2007
9/24/2007
9/25/2007
9/26/2007
217
215.7
214.4
220.5
218.8
217.8
216.8
215.4
210.5
210
211
214.6
214.6
213.2
209.1
208.8
210.1
215
212
207.4
209.7
208
208.7
205.2
206.3
208.9
208.6
211
211.8
211.2
212.1
209.6
208.2
208.1
210
209.9
212.3
210.7
211.4
210.1
208.5
209.1
210
211.1
207.5
206.1
206.6
210.5
210.2
211.9
214
212.5
211.7
75.19
74.74
75.27
75.17
75.15
74.91
75.3
75.81
76.39
75.47
76.25
74.38
74.4
74.29
73.42
74.16
73.92
74.58
73.46
71.67
71.95
73.37
72.96
73.22
72.62
72.4
72.4
73.09
73.32
73.51
72.99
72.98
73.56
73.53
74.81
74.81
76.88
77.96
79
79.09
79.15
78.3
78.93
78.58
78.99
77.56
79.2
80.1
79.55
79.38
79.3
79.22
79.19
9/27/2007
9/28/2007
10/1/2007
10/2/2007
10/3/2007
10/4/2007
10/5/2007
10/8/2007
10/9/2007
10/10/2007
10/11/2007
10/12/2007
10/15/2007
10/16/2007
10/17/2007
10/18/2007
10/19/2007
10/22/2007
10/23/2007
10/24/2007
10/25/2007
10/26/2007
10/29/2007
10/30/2007
10/31/2007
11/1/2007
11/2/2007
11/5/2007
11/6/2007
11/7/2007
11/8/2007
11/9/2007
11/12/2007
11/13/2007
11/14/2007
11/15/2007
11/16/2007
11/19/2007
11/20/2007
11/21/2007
11/22/2007
11/23/2007
11/26/2007
11/27/2007
11/28/2007
11/29/2007
11/30/2007
12/3/2007
12/4/2007
12/5/2007
12/6/2007
12/7/2007
12/10/2007
211.1
211.1
212.7
213
212.4
211.8
211.8
212
213.1
215.9
218.3
217.3
216.7
210.5
208.5
207.8
204.2
202.5
201.6
202.6
201.6
200
198.1
196.5
197.6
195.8
194.4
194.1
195.3
195
193.1
190.3
191.7
195.2
200.2
200.3
198.4
195.1
199.9
201.8
213.4
214.2
209.5
212
212.5
214.1
215.5
209
209.3
211.3
204.5
203.7
205
79.07
78.02
78.12
76.82
77.85
78
78.28
77.9
76.73
76.1
76.32
77.25
77.5
75.04
74.53
73.47
75
75
75.26
74.88
74.68
74.14
74.35
73.76
74.13
73.11
74.83
74.6
75.31
74.29
75.35
75.09
74.33
73.78
74.21
74.53
74.99
75.14
75.12
74.16
74.16
74.82
74.55
76.01
76.32
76.24
76.25
73.5
72.78
66.64
66.57
68.49
69.53
12/11/2007
12/12/2007
12/13/2007
12/14/2007
12/17/2007
12/18/2007
12/19/2007
12/20/2007
12/21/2007
12/24/2007
12/25/2007
12/26/2007
12/27/2007
12/28/2007
12/31/2007
1/2/2008
1/3/2008
1/4/2008
1/7/2008
1/8/2008
1/9/2008
1/10/2008
1/11/2008
1/14/2008
1/15/2008
1/16/2008
1/17/2008
1/18/2008
1/21/2008
1/22/2008
1/23/2008
1/24/2008
1/25/2008
1/28/2008
1/29/2008
1/30/2008
1/31/2008
2/1/2008
2/4/2008
2/5/2008
2/6/2008
2/7/2008
2/8/2008
2/11/2008
2/12/2008
2/13/2008
2/14/2008
2/15/2008
2/18/2008
2/19/2008
2/20/2008
2/21/2008
2/22/2008
204.8
205.3
200.1
201
198.7
197.9
196.6
196.4
195.5
195.5
195.5
195.5
195.6
195.6
195.6
195.6
192
190
192.1
203.5
207.7
208.6
205.9
203.3
198.1
197.7
201.6
203.5
193.8
195.5
190.7
194.6
194
192.2
189.4
193.5
195.8
199.4
198.8
194
196.1
193.1
191.6
190.7
193
197.3
196.7
192
194
194.2
192.2
194.2
196.1
69.89
70.58
69.74
68.43
67.57
67.29
67.33
67.96
67.9
68.12
68.12
68.06
67.13
67.51
67.07
67.4
67.11
66.38
66.27
68.29
70.11
70.88
71.5
70.64
69.62
69.94
69.75
68.77
68.77
68.35
67.66
68.43
67.79
68.84
69.53
69.56
70.16
70.81
71.49
70.78
70.52
69.92
69.79
69.48
69.92
70.85
72.12
72.67
72.67
72.84
72.37
71.75
71.599
2/25/2008
2/26/2008
2/27/2008
2/28/2008
2/29/2008
3/3/2008
3/4/2008
3/5/2008
3/6/2008
3/7/2008
3/10/2008
3/11/2008
3/12/2008
3/13/2008
3/14/2008
3/17/2008
3/18/2008
3/19/2008
3/20/2008
3/24/2008
3/25/2008
3/26/2008
3/27/2008
3/28/2008
3/31/2008
4/1/2008
4/2/2008
4/3/2008
4/4/2008
4/7/2008
4/8/2008
4/9/2008
4/10/2008
4/11/2008
4/14/2008
4/15/2008
4/16/2008
4/17/2008
4/18/2008
4/21/2008
4/22/2008
4/23/2008
4/24/2008
4/25/2008
4/28/2008
4/29/2008
4/30/2008
5/1/2008
5/2/2008
5/5/2008
5/6/2008
5/7/2008
5/8/2008
205
206.4
208.6
206
204.9
204.1
200
199.1
198.2
193.9
191.1
191.4
190.7
188.8
187.3
182.1
186
184.6
186.5
186.5
189.5
187.3
189.6
188.4
186.9
191.1
192.5
190.2
190
190.2
188.3
182.5
180.7
178.4
173
167
170.6
164.6
170.6
171.4
171
170.6
174.5
175.5
177
173.2
172.8
172.8
174
173.2
169.1
171.1
168.8
77.96
77.5
76.66
75.86
75.75
79.18
80.6
80.76
79.49
79.39
78.21
79.28
80.15
81.43
78.83
77.27
78.44
78.05
79.26
78.84
80.37
82.01
80.13
80
81.18
81.04
79.8
79.42
79.73
78.65
79.04
77.71
78
76.79
74.69
74.06
74.18
73.31
72.72
71.91
74.09
73.69
72.92
71.97
73.16
67.93
68.2
68.35
67.24
67.79
68.17
67.65
68.32
5/9/2008
5/12/2008
5/13/2008
5/14/2008
5/15/2008
5/16/2008
5/19/2008
5/20/2008
5/21/2008
5/22/2008
5/23/2008
5/26/2008
5/27/2008
5/28/2008
5/29/2008
5/30/2008
6/2/2008
6/3/2008
6/4/2008
6/5/2008
6/6/2008
6/9/2008
6/10/2008
6/11/2008
6/12/2008
6/13/2008
6/16/2008
6/17/2008
6/18/2008
6/19/2008
6/20/2008
6/23/2008
6/24/2008
6/25/2008
6/26/2008
6/27/2008
6/30/2008
7/1/2008
7/2/2008
7/3/2008
7/4/2008
7/7/2008
7/8/2008
7/9/2008
7/10/2008
7/11/2008
7/14/2008
7/15/2008
7/16/2008
7/17/2008
7/18/2008
7/21/2008
7/22/2008
167
167
171.5
173.6
177.9
177.9
181.3
179.3
178.5
178.6
174.9
172.7
176
177.5
180.2
179.7
188
187
183.5
184.8
180.8
180.4
177.9
176.8
177.9
179
176.2
175.8
174.6
175.8
171.5
173.3
175.2
176.3
175.8
175.1
184
181.8
183.6
182.8
180
179.1
180.7
183.7
185.8
180.3
182
184
180.5
176.8
179.6
171
177.2
68.53
68.37
68.55
69.26
68.83
70.19
70.2
69.46
68.22
68.89
68.53
68.53
67.56
68.06
71.01
70.87
73.95
72.7
72.47
73.11
73.69
74.09
74.35
73.91
73.8
73.77
74.65
75.17
74.36
75.06
74.76
74.18
73.45
73.78
72.44
72.72
75.9
78.56
78.14
77.94
77.94
75.93
77.91
78.09
77.91
77.75
75.39
79.25
78.77
81.16
81.82
93.88
93.55
7/23/2008
7/24/2008
7/25/2008
7/28/2008
7/29/2008
7/30/2008
7/31/2008
8/1/2008
8/4/2008
8/5/2008
8/6/2008
8/7/2008
8/8/2008
8/11/2008
8/12/2008
8/13/2008
8/14/2008
8/15/2008
8/18/2008
8/19/2008
8/20/2008
8/21/2008
8/22/2008
8/25/2008
8/26/2008
8/27/2008
8/28/2008
8/29/2008
9/1/2008
9/2/2008
9/3/2008
9/4/2008
9/5/2008
9/8/2008
9/9/2008
9/10/2008
9/11/2008
9/12/2008
9/15/2008
9/16/2008
9/17/2008
9/18/2008
9/19/2008
9/22/2008
9/23/2008
9/24/2008
9/25/2008
9/26/2008
9/29/2008
9/30/2008
10/1/2008
10/2/2008
10/3/2008
179.4
182.5
188.9
186.8
186.3
189.2
194.3
194.3
193.9
195.5
191
186.4
189.6
186.4
185.4
187.4
187.8
189
187.3
187
185.6
182
183.1
181.7
183.8
183.3
185.6
186
185
188.1
186.8
184
183.4
186
185.2
189.2
188.5
190.8
186.8
181
182
183
180.1
176
176.4
174.5
178.4
176
169.6
174.5
178.4
179.5
181.1
93.73
94.65
96
95.32
94.58
95
95.25
95.35
95.72
96
96.05
96.89
96.95
97.83
97.85
98.37
98.81
98.23
98.63
98.57
97.99
97.43
98.06
97.38
98.11
97.9
98.45
98.75
98.75
98.29
97.68
96.5
96.64
94.91
94.25
95.69
97.1
96.56
93.83
93.39
89.6
90.7
92.27
92.3
91.49
90.4
91.75
91.19
85.3
88.68
86.5
86.51
87.53
10/6/2008
10/7/2008
10/8/2008
10/9/2008
10/10/2008
10/13/2008
10/14/2008
10/15/2008
10/16/2008
10/17/2008
10/20/2008
10/21/2008
10/22/2008
10/23/2008
10/24/2008
10/27/2008
10/28/2008
10/29/2008
10/30/2008
10/31/2008
11/3/2008
11/4/2008
11/5/2008
11/6/2008
11/7/2008
11/10/2008
11/11/2008
11/12/2008
11/13/2008
11/14/2008
11/17/2008
11/18/2008
11/19/2008
11/20/2008
11/21/2008
11/24/2008
11/25/2008
11/26/2008
11/27/2008
11/28/2008
12/1/2008
12/2/2008
12/3/2008
12/4/2008
12/5/2008
12/8/2008
12/9/2008
12/10/2008
12/11/2008
12/12/2008
12/15/2008
12/16/2008
12/17/2008
171.9
175
167.1
154.4
148.2
162.4
162.8
160.3
159
175.5
180.3
170.3
168.6
170.3
168
164.1
161.2
168.5
161.3
176.8
177.2
178.1
167.8
165.3
170.3
170
167.7
166.5
170.3
176.2
168
171
166
156.2
150.5
162.1
163
163.8
162.7
170
163.8
163.5
169.1
165.9
164.7
169.6
169.8
168.1
167.2
168.2
161.9
163.8
160.2
80.62
78.19
80.56
78.75
73
81.18
79.12
81.5
81.93
83.53
84.26
85.68
82.55
81.9
79.84
78.46
78.55
80.36
82.75
82.94
83.64
83.31
83.91
81.8
83.46
83.8
80.9
80.36
82.32
81.59
80.43
80.63
78.07
73.03
72.74
76.66
76.25
75.3
75.3
76.6
71.8
71.77
75.4
73.65
74.38
77.6
77.18
77.4
77.79
77.74
77.08
77.59
78.75
12/18/2008
12/19/2008
12/22/2008
12/23/2008
12/24/2008
12/26/2008
12/29/2008
12/30/2008
12/31/2008
1/2/2009
1/5/2009
1/6/2009
1/7/2009
1/8/2009
1/9/2009
1/12/2009
1/13/2009
1/14/2009
1/15/2009
1/16/2009
1/19/2009
1/20/2009
1/21/2009
1/22/2009
1/23/2009
1/26/2009
1/27/2009
1/28/2009
1/29/2009
1/30/2009
2/2/2009
2/3/2009
2/4/2009
2/5/2009
2/6/2009
2/9/2009
2/10/2009
2/11/2009
2/12/2009
2/13/2009
2/16/2009
2/17/2009
2/18/2009
2/19/2009
2/20/2009
2/23/2009
159.4
160
163
160.5
160.5
160.5
162.5
162.5
162.5
162.5
168.7
170.5
169.9
172.5
171.9
166.1
168.6
169.2
170.4
167.2
170
170.3
170
168.9
169.4
170.6
166.5
165.6
160.3
163.4
163.5
162.6
147.8
145.4
145.2
148.6
147
147.7
148.7
148.7
148
145.3
147.2
144.4
141.4
143.3
80.3
83.75
82.55
83
82.8
82.21
81.97
82.28
82.91
82.6
83
84
84.53
84.4
86.34
87.47
86.74
85.57
85.08
85.1
85.1
82.1
83.14
81.7
84.3
81.59
83.14
83.44
84.09
81.24
82.1
82.97
82.45
82.4
83
82.7
82.69
83
84
83.25
83.25
83
84.7
84.76
85.02
84.55
Exhibit 5
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Annual Yield Rate to Maturity (U.S. Dollar, Euro, British Pound), February 2009
(in percent)
U.S.
Euro
UK
1
Treasuries
Benchmark
Sovereign
6-mo
0.34
n.a.
0.48
1
0.48
2.09
0.56
2
0.93
2.26
0.88
3
1.35
2.55
1.39
4
1.50
2.81
1.85
5
1.87
3.01
2.29
6
n.a.
3.19
2.79
7
2.18
3.35
3.06
8
2.67
3.48
3.25
9
2.80
3.60
3.50
10
2.85
3.70
3.66
12
n.a.
3.87
n.a.
15
3.45
3.99
4.13
20
3.91
3.99
4.29
25
3.90
3.83
4.34
30
3.59
3.69
4.35
Source: Bloomberg.
1
The euro benchmark is obtained from the midrate of the euro versus the EURIBOR midinterest rate swap.
Exhibit 6
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
U.S. Treasuries for S&P's Bond-Rating Categories for
February 2009
(in basis points)
Years to maturity
Rating
10
30
AAA
90
82
77
90
136
114
170
AA
210
201
198
202
224
204
242
A+
211
201
217
226
243
226
242
279
261
278
277
290
275
263
289
271
287
286
303
284
273
BBB +
406
387
409
406
412
406
394
BBB
417
398
422
424
435
418
411
BBB
493
497
510
520
527
509
506
Exhibit 7
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
History of U.S. Bond Yields for 30-Year Maturities, February 2006 to February 2009 (in percent)
10.00
9.00
8.00
7.00
6.00
Yield (%)
5.00
4.00
3.00
2.00
U.S. Treasuries 30-Mergent Corporate Mergent Corporate Bond Yield Average - Baa Rating
Feb-06
4.51
5.51
6.27
Mar-06
4.83
5.67
6.41
Apr-06
5.15
6.00
6.68
May-06
5.15
6.13
6.75
Jun-06
5.25
6.11
6.78
Jul-06
5.10
6.08
6.76
Aug-06
4.95
5.91
6.59
Sep-06
4.73
5.75
6.43
Oct-06
4.89
5.74
6.42
Nov-06
4.66
5.57
6.20
Dec-06
4.78
5.58
6.22
Jan-07
4.92
5.75
6.34
Feb-07
4.80
5.72
6.28
Mar-07
4.82
5.66
6.27
Apr-07
4.84
5.83
6.39
May-07
4.99
5.85
6.39
Jun-07
5.19
6.17
6.70
Jul-07
5.01
6.09
6.65
Aug-07
4.85
6.06
6.65
Sep-07
4.87
6.02
6.59
Oct-07
4.67
5.94
6.48
Nov-07
4.36
5.78
6.40
Dec-07
4.61
5.91
6.65
Jan-08
4.28
5.78
6.54
Feb-08
4.59
5.97
6.82
Mar-08
4.33
5.90
6.89
Apr-08
4.52
5.93
6.97
May-08
4.71
6.00
6.92
Jun-08
4.63
6.11
7.07
Jul-08
4.66
6.05
7.16
Aug-08
4.40
6.01
7.15
Sep-08
4.40
6.03
7.31
Oct-08
4.24
6.79
8.88
Nov-08
3.60
6.73
9.21
Dec-08
2.62
5.81
8.45
Jan-09
3.45
5.84
8.14
Feb-09
3.60
6.02
8.08
Exhibit 8
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
S&P Credit Ratings Overview
S&Ps global bond rating scale provides a benchmark for evaluating the relative credit
risk of issuers and issues worldwide.
Investment grade
AA
Extremely strong capacity to meet financial commitments. Highest
A
rating
AA
Very strong capacity to meet financial commitments
A
BB
B
Speculative grade
BB
Less vulnerable in the near-term but faces major ongoing
uncertainties to adverse business, financial and economic
conditions
B
More vulnerable to adverse business, financial and economic
conditions but currently has the capacity to meet financial
commitments
CC
Currently
vulnerable and dependent on favorable business,
C
financial and economic conditions to meet financial commitments
CC
Currently highly vulnerable
C
D
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign
to show relative standing within the major rating categories.
Data source: Guide to Credit Rating Essentials, Standard and Poors, http://www2.standardandpoors.com/sp
ON
Exhibit 9
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Median Financial Ratio Values for all U.S. Rated Industrial Companies (2007 and 2008)
Number of
Debt/
EBITDA/
EBIT/
companies (Debt+BookEq) Int Expense Int Expense
Debt/
EBITDA
2007
AAA
AA
A
BBB
BB
B
26
189
539
924
470
335
0.51
0.30
0.41
0.50
0.52
0.71
95.47
35.92
12.45
8.20
6.59
3.71
74.06
31.05
9.86
6.11
4.63
2.30
2.26
0.85
1.63
2.66
2.82
4.66
AAA
AA
A
BBB
BB
B
18
182
559
924
417
321
0.51
0.26
0.43
0.50
0.52
0.75
113.97
43.97
12.78
8.23
6.40
3.41
81.62
31.21
9.89
6.42
4.51
2.10
3.25
0.81
1.81
2.47
2.82
4.92
2008
Exhibit 10
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Plan for Currency and Maturity of Bond Offering Tranches1
U.S. dollar-denominated
Maturity Amount (in billions of U.S. dollars) Coupon
1 year
2 years
3 years
5 years
10 years
30 years
3.00
1.25
2.50
2.75
4.50
2.50
Euro-denominated
Maturity
Amount (in billions of euros)
1 year
1.50
4 years
5.25
7 years
2.75
12 years
1.75
Sterling-denominated
Amount (in billions of British
Maturity
pounds)
6 years
1.25
Floating rate
Floating rate
Fixed rate
Fixed rate
Fixed rate
Fixed rate
Coupon
Floating rate
Fixed rate
Fixed rate
Fixed rate
Coupon
Fixed rate
Prevailing exchange rates at the time were CHF1.67/GBP1.00, CHF1.18/USD1.00, and CHF1.48/EUR1.00
Exhibit 11
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Prevailing Prices of Sample of Recently Rated Corporate Bonds (Mid-February 2009)
Issue date
U.S. dollar-denominated
Altria
Altria
Altria
AT&T
AT&T
AT&T
Johnson & Johnson
McKesson
McKesson
Novartis
Novartis
Pfizer
Schering-Plough
Schering-Plough
Verizon
Verizon
Warner Chilcott
Years
Amount
remaining S&P
Maturity
issued Coupon
to
rating
(millions)
maturity
2/3/2009
2/3/2009
2/3/2009
1/29/2009
1/29/2009
1/29/2009
6/23/2008
2/9/2009
2/9/2009
2/10/2009
2/10/2009
2/3/2004
11/26/2003
9/17/2007
11/4/2008
11/4/2008
2/1/2006
2/6/2014
2/6/2019
2/6/2039
2/15/2014
2/15/2019
2/15/2039
7/15/2038
2/15/2014
2/15/2019
2/10/2014
2/10/2019
2/15/2014
12/1/2013
9/15/2037
11/1/2018
3/31/2039
2/1/2015
5
10
30
5
10
30
29
5
10
5
10
5
5
29
10
30
6
BBB
BBB
BBB
A
A
A
AAA
BBB+
BBB+
AA
AA
AA
AA
AA
A
A
BB
525
2,200
1,500
1,000
2,250
2,250
700
350
350
2,000
3,000
750
1,250
1,000
2,000
1,250
600
7.75
9.25
10.2
4.85
5.8
6.55
5.85
6.5
7.5
4.125
5.125
4.5
5.3
6.55
8.75
8.95
8.75
Euro-denominated
Anheuser-Busch InBev
Imperial Tobacco
John Deere
Schering-Plough
Volkswagen
Volkswagen
2/9/2009
2/10/2009
1/19/2009
10/1/2007
1/30/2009
1/30/2009
2/27/2014
2/17/2016
1/24/2014
10/1/2014
2/9/2012
2/9/2016
5
7
5
6
3
7
BBB+
BBB
A
AA
A
A
750
1,500
600
1,500
2,500
1,000
6.57
8.375
7.5
5.375
5.625
7
Pound sterling-denominated
Bayer AG
5/23/2006 5/23/2018
Imperial Tobacco
2/10/2009 2/17/2022
Tesco
2/17/2009 2/24/2014
9
13
5
A
BBB
A
350
1,000
600
Company
2/15/2009
5.625
9
5
UISITION
bruary 2009)
Price
105.835
104.612
105.079
99.790
98.877
96.626
111.000
103.372
106.156
101.778
100.746
105.660
103.820
101.332
118.582
124.467
95.000
100.558
101.048
105.801
99.710
100.332
100.238
100.817
107.062
100.284
Exhibit 12
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Selected Comparable Companies Data for 2008
(in millions of U.S. dollars)1
Shareholder equity Total debt
Cash and
equivalents
EBITDA
Bayer AG
Schering-Plough
Johnson & Johnson
Pfizer
Wyeth
GlaxoSmithKline
Merck & Co.
AstraZeneca
Warner Chilcott
Roche Holding
21,381
10,529
46,100
57,556
19,174
15,900
21,080
15,912
1,350
41,569
21,779
8,176
11,852
17,290
11,739
25,211
6,240
11,848
963
4,051
2,740
3,373
10,768
2,122
10,016
8,758
4,368
4,286
36
4,870
8,183
2,917
19,001
20,929
7,954
15,388
7,854
12,553
508
16,751
Roche +
Genentech (Pro
Forma)
41,569
46,051
4,870
16,751
Because the Genentech financial figures are already consolidated in the Roche financial statements, only the debt and interest expense is
CH ACQUISITION
2008
Interest
expense
1,626
536
435
516
492
1,291
251
714
94
213
Current rating
AAAAAA
AA
A+
A+
AAAA
BBAA-
2,303