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Rejuvenating the portfolio

Alan Hippe, CFO

J.P. Morgan, 37th Annual Healthcare Conference, San Francisco 2019


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 – www.roche.com
All mentioned trademarks are legally protected
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Performance update

Rejuvenating the portfolio

Productivity

Outlook

3
Q3 2018: Sales growth for the seventh consecutive year

10%

8%
8%
7% 7% 7% 7%
6% 6% 6% 6% 6% 6% 6% 6%
6%
6%
5%
5% 5% 5%
4%
4%
4% 4% 4% 4% 4%
3% 3%
2%
2%

0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18

All growth rates at Constant Exchange Rates (CER)


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HY 2018: Strong Core results, significant operating free cash flow

Operating profit EPS Operating free cash flow

39.4% 38.5% 39.7% 28.8% 28.6%


% of sales
21.9%

+10% at CER
CHFbn CHF +19%1 at CER CHFbn
11.2
+7% at CER
9.84
9.9 10.1
8.0
8.23
7.74 7.6

5.5

HY 2016 HY 2017 HY 2018 HY 2016 HY 2017 HY 2018 HY 2016 HY 2017 HY 2018

CER=Constant Exchange Rates


1+8% at CER excl. US tax reform
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New product growth expected to show strong momentum
Considerable optionality
Sensitivity analysis: Assuming conservative planning 2017-2022 consensus
assumptions of 60-70% erosion from biosimilars sales growth* (CHF)

Ocrevus 4.5 bn
Avastin
Tecentriq 2.3 bn
6.7 bn to fill: Hemlibra 2.1 bn
~10 bn1 Gazyva 1.0 bn
Mabthera Alecensa 1.1 bn
CHF

7.4 bn In-market & mature2 (0.6 bn)


4 bn
Pipeline value3 0.4 bn
Perjeta Total ~11 bn
Herceptin Kadcyla
7.0 bn Herceptin Up-side potential to consensus above are:
Venclexta, SMA (risdiplam), Huntington (HTT-
H+P SC
ASO), Autism (balovaptan), Alzheimer
(gantenerumab & crenezumab), Ophthalmology
2017 Sales 2022 Sales (Port Delivery System), Infectious disease
(baloxavir marboxil), Oncology (polatuzumab,
idasanutlin, ipatasertib, mosunetuzumab)

* Source: Roche post-HY2018 consensus; 1 Gap value including the total HER2 franchise change from 2017 to 2022, assuming Lucentis will be replaced by faricimab; 2 Esbriet, 6
Tarceva, Xolair, Pulmozyme, Rocephin, CellCept, Mircera, NeoRecormon/Epogin, Activase/TNKase, Xeloda, Valcyte/Cymevene, Actemra, Tamiflu, Madopar, Pegasys; 3 etrolizumab
Performance update

Rejuvenating the portfolio

Productivity

Outlook

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Breakthrough innovation remains key
Highest number in industry reflects quality of our research

Phase duration (years)

No = 7.5

Fast track = 5.8

Accelerated review = 3.8

Breakthrough therapy = 3.6

BTD=Breakthrough Therapy Designation; Data source: Evaluate Pharma, Decision Resources, Prismaccess
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Near term pipeline carries significant revenue potential
Market Market
Submission Molecule Indication Submission Molecule Indication
opportunity opportunity
Hemlibra Hemophilia A, non-inhibitors 2018 Xofluza Influenza A & B

polatuzumab vedotin R/R DLBCL satralizumab Neuromyelitis optica


2019
Venclexta 1L AML risdiplam SMA

2018 Tecentriq 1L NSq NSCLC 2020 anti-myostatin DMD

Tecentriq 1L ES SCLC crenezumab Alzheimer’s disease

Tecentriq 1L TNBC HTT-ASO Huntington’s disease

Tecentriq + Avastin RCC balovaptan Autism


2021
entrectinib NSCLC ROS1+, NTRK1 PDS wAMD

idasanutlin AML faricimab DME


Tecentriq+Cotellic+/-Zelboraf BRAFm Mel, BRAFwt Mel etrolizumab UC/CD
2019
Tecentriq neoadj TNBC

Venclexta + Gazyva 1L CLL

Tecentriq + Avastin 1L HCC


Oncology / Hematology
ipatasertib 1L CRPC, 1L TNBC, HER2-/HR+ BC Ophthalmology Small: up to CHF 0.5 bn

Tecentriq 1L mUC Neuroscience medium= CHF 0.5 to CHF 1bn


2020
Tecentriq CRPC Immunology
large > CHF1bn
Tecentriq + Avastin 1L OC Infectious disease

2021 polatuzumab vedotin 1L DLBCL

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Replace and extend the business
Through continuously improving standard of care
Replace existing businesses Entering new Why did we get more optimistic over the
franchises past years?

Gazyva,
Venclexta,
MabThera/Rituxan MS:
polatuzumab vedotin,
Ocrevus
Subcutaneous (+) New molecular entities (NMEs) with
fast approval and up-take for
Perjeta, Ocrevus, Alecensa, Perjeta, Venclexta,
Herceptin Kadcyla,
Hemlibra
Subcutaneous Hemophilia A:
Tecentriq, Hemlibra
Avastin entrectinib, (+) Pipeline development with highest
ipatasertib number of NMEs, in particular in CNS,
Faricimab, CNS: Ophthalmology, Infectious Diseases
Lucentis
Port Delivery System SMA, Autism,
Huntington’s,
Tamiflu Xofluza Alzheimer’s

VA2=aVEGF/ANG2 biAB; MS=multiple sclerosis; SMA=spinal muscular atrophy; RMS=relapsing MS; PPMS=primary progressive MS; iNHL=indolent Non-Hodgkin`s lymphoma; NSCLC=non-small cell lung cancer; ES-SCLC=extensive stage small
cell lung cancer; RCC=renal cell carcinoma; TNBC=triple negative breast cancer; eBC=early breast cancer; R/R CLL=relapsed/refractory chronic lymphocytic leukemia; DME=diabetic macular edema; wAMD=wet age-related macular
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degeneration
Roche positioned to maintain market leadership in hematology

Broad portfolio Differentiated Combinations Innovation and Acceleration

• Largest hematology portfolio across • Portfolio breadth enables opportunity for • Develop early endpoints (e.g. MRD)
indications and asset classes intra-portfolio combinations, including: • Innovative trial design: Hemlibra
• Bispecific Antibodies • Gazyva + Venclexta (1L CLL) intrapatient comparison
• ADCs • Venclexta + Idasanutlin (R/R AML) • Fast to market strategies: Venclexta
• Small molecules, etc. • Polatuzumab + Mosun (FL/DLBCL) accelerated approval in AML on PhIb/II

ADC=antibody drug conjugate; MRD=minimal residual disease; FL = follicular lymphoma; DLBCL = Diffuse large b-cell lymphoma; CLL=chronic lymphoid leukemia;
AML=acute myeloid leukemia; Venclexta in collaboration with AbbVie
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Defining and redefining the standard of care in B-cell malignancies

Hematology market Advancing B-cell biology for over 20 years, with novel MOAs

Incidence rates1 1997 2019 (est.) To be confirmed

chemotherapy Polatuzumab mosunetuzumab


DLBCL (CHOP/benda) +chemo
+R-chemo CD20/CD3 TCB
+chemo/polatuzumab
treatment
evolution

14%

2009 2013 2019 (est.)


chemotherapy
CLL (chlorambucil) +Clb +Clb +Gazyva
treatment
evolution

Total CLL, NHL (DLBCL/iNHL) market growing to USD 9bn & 15bn, respectively by 20242

CLL=chronic lymphocytic leukemia; aNHL=agressive non-hodgkin’s lymphoma; iNHL=indolent non-Hodgkin’s lymphoma; R/R=relapsed refractory; DLBCL=diffuse large B-cell lymphoma; R=Rituxan; G=Gazyva;
clb=chlorambucil; benda=bendamustine; 1 Datamonitor: incidence rates includes the 7 major markets (US, Japan, France, Germany, Italy, Spain, UK); 2 Evaluate Pharma; Venclexta in collaboration with AbbVie 12
Defining and redefining the standard of care in B-cell malignancies

Hematology market Advancing B-cell biology for over 20 years, with novel MOAs

Incidence rates1 Polatuzumab vedotin Mosunetuzumab Anti-CD20/CD3 TCB


Overall Survival R/R DLBCL/trFL aNHL/DLBCL 10mg cohort*

DLBCL
treatment
evolution

14%

CLL
treatment
evolution

Total CLL, NHL (DLBCL/iNHL) market growing to USD 9bn & 15bn, respectively by 20242

CLL=chronic lymphocytic leukemia; aNHL=agressive non-hodgkin’s lymphoma; iNHL=indolent non-Hodgkin’s lymphoma; R/R=relapsed refractory; DLBCL=diffuse large B-cell lymphoma; R=Rituxan; G=Gazyva;
clb=chlorambucil; benda=bendamustine; 1 Datamonitor: incidence rates includes the 7 major markets (US, Japan, France, Germany, Italy, Spain, UK); 2 Evaluate Pharma; Venclexta in collaboration with AbbVie 13
Expanding to hematologic cancers with high unmet need
Venclexta with CR rates double of historical SOC in 1L unfit AML
Hematology market Results from M14-358 PhIb/II trial in 1L Unfit AML

Incidence rates1 Cross trial comparison with Azacitadine (standard of care)

Ven (400mg) + Ven (400mg) + azacitadine


azacitadine decitabine (historical data)2

CR 44% 55% ~20%


CR+CRi 71% 74% ~28%
14%
MRD-negative 48% 39% N/A
mOS 16.9m 16.2m 10.4m

• ~50% of 1L AML patients are unfit for • US: Approval for Venclexta+HMA/LDAC in 1L unfit AML; two confirmatory Ph 3 trials ongoing
intense chemotherapy
• Promising early activity in R/R AML in combination with idasanutlin also presented

Pollyea, et al., ASH 2018; HMA=hypomethylating agent; LDAC=low dose aracytarabine; dex=dexamethasone; MRD=minimal residual disease: AML=acute myeloid leukemia; CR=complete
response; 1 Datamonitor: incidence rates includes the 7 major markets (US, Japan, France, Germany, Italy, Spain, UK); 2 Dombert H., et al., International phase 3 study of azacitidine vs conventional
care regimens in older patients with newly diagnosed AML with >30% blasts. Blood. 2016;126 (3): 291-299; MRD<10-3 Venclexta in collaboration with AbbVie 14
Breast cancer: Expanding into areas with high unmet need
Continue defining the SoC in HER2+ BC
Incidence pivotal trials Kadcyla in eBC
KATHERINE disease free survival

ipatasertib IPATunity130 (Ph III 1L Dx+)


New opportunity 15% TNBC
IMpassion130 (Ph III 1L), filed
IMpassion131 (Ph III 1L)
Roche marketed 20% IMpassion132 (Ph III 1L)
Her2+ IMpassion031 (Ph III NeoAdj)
IMpassion030 (Ph III Adj)

KATHERINE (Ph III non-pCR Adj)

Her2- IMpassion050 (Ph III NeoAdj)


New opportunity 65% HR+

IPATunity130 (Ph III 1st chemo


ipatasertib
Dx+)

Incidence rates (490,000 pts1)

1 Source: Datamonitor and internal estimates, US & EU5; SoC=standard of care; BC=breast cancer; TNBC=triple negative breast cancer
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Lung cancer
Broad coverage with differentiated growth opportunities
Lung cancer market

Incidence rates1 Driver


• Alecensa rapidly established as market leader in 1L ALK+
mutations
• Entrectinib setting a new SOC in ROS1+/NTRK+
NSCLC

SCLC • Tecentriq with OS benefit with chemo in 1L SCLC

• Tecentriq: 3 positive Ph III trials, including multiple chemos


1L NSq
• Uniquely differentiated with abraxane and Avastin combinations
NSCLC
• Strong efficacy in patients with liver metastases (~20% pts)

Early
• Pivotal studies in neoadjuvant and adjuvant ongoing
NSCLC

Total lung cancer market growing from USD ~14bn in 2017 to ~33bn in 2024 2
CIT=Cancer Immunotherapy; SCLC=small cell lung cancer; NSCLC=non-small cell lung cancer, Sq=squamous, NSq=non-squamous, SOC=standard of care; 1 Datamonitor: incidence rates includes
the 7 major markets (US, Japan, France, Germany, Italy, Spain, UK); 2 Evaluate Pharma
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Replace and extend the business
Through continuously improving standard of care
Replace existing businesses Entering new Why did we get more optimistic over the
franchises past years?

Gazyva,
Venclexta,
MabThera/Rituxan MS:
polatuzumab vedotin,
Ocrevus (+) New molecular entities (NMEs) with fast
Subcutaneous
approval and up-take for Ocrevus, Alecensa,
Perjeta, Perjeta, Venclexta, Hemlibra
Herceptin Kadcyla,
Subcutaneous (+) Pipeline development with highest number
Hemophilia A:
of NMEs, in particular in CNS, Ophthalmology,
Tecentriq, Hemlibra
Infectious Diseases
Avastin entrectinib,
ipatasertib
Faricimab CNS:
Lucentis
Port Delivery System SMA, Autism,
Huntington’s,
Tamiflu Xofluza Alzheimer’s

VA2=aVEGF/ANG2 biAB; MS=multiple sclerosis; SMA=spinal muscular atrophy; RMS=relapsing MS; PPMS=primary progressive MS; iNHL=indolent Non-Hodgkin`s lymphoma; NSCLC=non-small cell lung cancer; ES-SCLC=extensive stage small
cell lung cancer; RCC=renal cell carcinoma; TNBC=triple negative breast cancer; eBC=early breast cancer; R/R CLL=relapsed/refractory chronic lymphocytic leukemia; DME=diabetic macular edema; wAMD=wet age-related macular
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degeneration
Multiple Sclerosis
Goal to be market leader in MS
Ocrevus uniquely differentiated in RMS and PPMS

RMS PPMS MS Projected Revenue Uptake Curves1 US New/Switch Patient Share2

Efficacy Superior to SOC First therapy to show Ocrevus


DMT efficacy in setting 35% Ocrevus
Tecfidera
70,000+ patients; 4-year safety data
Safety presented; no PML cases related to drug
Copaxone (incl. generic)
Gilenya ABREPS
Tysabri
Aubagio
Convenience IV – twice yearly Tysabri Tecfidera

Aubagio
Priced below or similar to high efficacy Gilenya
Access therapies, broad payer coverage in US, Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Other
reimbursement ongoing in EU

New MS
12%
US: Total Patient
70 Sales split:
Market Share
As of Q3 2018
#1 prescription in US
As of Mar 2018 30
RMS/PPMS
Q3 2018

Total MS market USD ~23bn in 20171

SOC=Standard of Care; RMS=Relapsing Multiple Sclerosis; PPMS=Primary Progressive Multiple Sclerosis; DMT=disease modifying therapy; 1 Source: Evaluate Pharma 2. US IMS and Symphony claims data Q1’18
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Bringing transformative therapies to non-malignant hematology

Hemophilia patient overview1 Hemlibra transforming care for patients with and without inhibitors

bypassing agents 2017


5%
20-25%
Hemophilia
(inhibitor)
45% treatment
10%
evolution

15%
Factor VIII/
2018
Hemophilia Modified FVIII
Inhibitors R/R AML
(non-inhibitor)
Non-inhibitors with bleeds treatment
treatment
evolution
evolution
Paediatric
Non-inhibitors without bleeds
Mild

Total hemophila A market growing to USD 13bn by 2024 2

1. Data from internal estimates 2. Evaluate Pharma


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Emerging opportunities in CNS
Adressing high medical need
Risdiplam in SMA HTT-ASO in Huntington Balovaptan in autism (ASD)
Phase II/III (FIREFISH) Type 1 SMA Pivotal trial initiated Pivotal trial initiated in adults*
Median change from baseline in CHOP-INTEND

• 20/21 babies (95%) were alive at 10.5m • Highest doses: mean reductions of • Dose dependent treatment effect on
• With 8 m treatment: 3 unassisted sitting babies mHTT protein of 40% to 60% VinelandTM-II score
• Broad clinical program including Type 1 to 3 • Safe and well tolerated • Ph II study in children ongoing

* Primary endpoint (SRS-2) in Phase 1 not met


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Transforming Healthcare through new era of data and analytics

Deeper
Enhanced matching of
scientific insights
patients with therapies
(bench to bedside)

Better, earlier Improving access and


go/no-go decisions Smarter, Improved value-based healthcare
more access &
efficient personalized
R&D care
Faster, more
Accelerating
efficient trials
optimization of care

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Performance update

Rejuvenating the portfolio

Productivity

Outlook

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Transforming our operating model
Building an effective organization for the future

R&D Manufacturing Commercial


US
+11%
Europe
US
+3% LATAM
International
Volume Core COGS and APAC
Example: Filing of IMpassion 130 HY 2018 vs. HY 2017 Period Costs
in 14 weeks (down from 26w) EEMEA

 Fit-for-purpose teams enabling fast, but  Lean management production program  Simplified structures, processes &
rigorous decision making culture to drive effectiveness
 Favorable product mix
 Faster filing initiatives (e.g. regulatory  Productivity initiatives
acceleration, dossier optimizing)  Management of inventory
 Resource shift to support key launches
 PHC and data strategy driving insights
and R&D efficiencies

EM=Emerging Market; PHC=Personalized Healthcare; COGS=cost of goods sold 23


Performance update

Rejuvenating the portfolio

Productivity

Outlook

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Q3 2018: Record number of NMEs at pivotal stage
entrectinib
polatuzumab vedotin
polatuzumab vedotin ipatasertib
ipatasertib Hemlibra
Hemlibra idasanutlin
Hemlibra idasanutlin Perjeta+Herceptin FDC SC
idasanutlin Hemlibra taselisib faricimab
taselisib idasanutlin faricimab PDS with ranibizumab
Venclexta taselisib risdiplam HTT-ASO Oncology
Alecensa Alecensa balovaptan risdiplam Ophthalmology
NMEs

Tecentriq Tecentriq anti-myostatin adnectin balovaptan Neuroscience


lampalizumab lampalizumab crenezumab anti-myostatin adnectin Immunology
satralizumab crenezumab satralizumab crenezumab Infectious Disease
gantenerumab satralizumab gantenerumab satralizumab
Ocrevus gantenerumab Ocrevus gantenerumab
lebrikizumab Ocrevus baloxavir marboxil baloxavir marboxil
etrolizumab etrolizumab etrolizumab etrolizumab

FY 2015 FY 2016 FY 2017 Q3 2018


extensions

5 5 4 5
line

27 1 1 1
33 31 42
1

NME=new molecular entities; baloxavir marboxil (Cap Endonuclease inhibitor); risdiplam (SMN2 splicer); FDC=Fixed dose combination; SC=Subcutaneous; PDS=Port delivery system
For details on the indications and line extensions please consult the pipeline appendix
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2018 outlook

Group sales growth1 • Mid single digit

• Broadly in line with sales, excl. US tax reform benefit


Core EPS growth1
• Mid teens incl. US tax reform

Dividend outlook • Further increase dividend in Swiss francs

1 At Constant Exchange Rates (CER)


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Doing now what patients need next