‘Operational Excellence’ - Roche

1 operational excellence Ensuring sustained success in a more challenging environmentConference Call; 17 November 20102 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.

2 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; and11 adverse publicity and news 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 marketed products discussed in this presentation.

3 Please see full prescribing information on our website mentioned trademarks are legally protected3 Overview and ImplicationsKey InitiativesConclusions4 Industry environment and RocheResponding decisively to recent challengesSolid fundamentals Huge unmet medical need Dramatic progress in science & technologyPosition of strength Clear strategic focus on Rx and Dx Leadership in innovation and markets High cash-flow and profitabilityIndustryRoche5 Industry environment and RocheResponding decisively to recent challengesSolid fundamentals Huge unmet medical need Dramatic progress in science & technologyChallenging environment Pricing pressure in US and Europe Increasing regulatory hurdlesPosition of strength Clear strategic focus on Rx and Dx Leadership in innovation and markets High cash-flow and profitabilityOperational excellence Compensate for recent product setbacks Focus on investments that will drive innovationIndustryRoche6 ApproachComprehensive scope, differentiated measuresResearch & Early Ops / SitesCommercial US/EU1 Finance, IT, HR, communication .

4 LegalCommercial - ROWG roupFunctions1G&A/ProcurementModerate impactStrong impactgREDpREDP harmaPartneringPharmaMedicines7 financial impact Expected savings of CHF billion by 2012120112012 Pharma Medicines1 8302 440pREDO ther2 Group Functions2 Pharma Partnering, gRED, Diagnostics sitesCommercialTech Ops & SitesDevelopment1In addition to synergies of CHF 1 billion from the Genentech integrationCHF million140420801203704402703201070900707 0815001200900400200400600200 financial impactOne-off restructuring costs of about CHF billionCHF million201020112012 Non-CashCashTotal 2010-121 5008004002 7009 financial impactOne-off restructuring costs of about CHF billionTotal 2010-122 700IT / Other costsPortfolio prioritization costsSite closure and transfer costsEmployee-related costsCHF million400120080030010 Impact on headcount by functionExpected reduction of 4 800 positions by end of 2012 TransferredPositions2

5 PositionsreducedPharmaMedicinespREDD iagnosticsOther11 Group Functions, Pharma Partnering, gREDC ommercialDevelopmentTech Ops/Sites-4 800-600-640-260-4 800+1 500-2 650-800-1 350-6 300 Positionsaffected2 Total number of positions transferred to other sites (800)/3rd parties (700)11 Impact on headcount by geographyMain impact in US and EuropeUSACHE urope(excl. CH)ROW-3 550-770-1 300-680-6 300 PositionsaffectedTransferredPositions1 Positionsreduced1 Total number of positions transferred to other sites (800)/3rd parties (700)-4 800+1 50012 Impact on product pipelineProtecting innovation capabilities Retain diversity of approaches (gRED, pRED, Pharma Partnering, Diagnostics, Chugai) generalgRED Maintain momentum after integration (stable budget 2011)

6 PRED Implement focused approach, maintain critical mass for core projects and increase flexibility for external partnershipsdevelopment Optimize sites and sourcing network to secure funding for key programs13 Roche Group pharma R&D pipeline todayStatus as of November 10, 2010phase I (38 NMEs)phase II (17 NMEs + 7 Als)phase III(8 NMEs + 23 Als)Registration(1 NME + 8 Als)NMEA dditional IndicationOncologyInflammation/Immunolog yVirologyMetabolic/CardiovascularCNSO phthalmologyOthersRG-No Roche Genentech managedCHUC hugai managedEVO EvotecRG105 MabThera is branded as Rituxan in US and JapanRG1569 Actemra is branded as RoActemra in EU* approved in EU** filed in UShedgehog path inh operable BCCRG3616 Met Mab mNSCLCRG3638pertuzumab EBC HER2+RG1273hedgehog path inh advanced BBCRG3616 AvastinmBC 2ndlineRG435**pertuzumab mBC HER2+ 2ndlineRG1273topoisomerase I inh gastric cancerCHUnavitoclax (ABT-263)

7 Sol & hem tumorsRG7433OX40L huMab asthmaRG4930lebrikizumab (anti-IL13) asthmaRG3637palovarotene emphysemaRG667rontalizumab (IFN alpha Ab) SLERG7415 Xolair chronic idiopathic urticariaRG3648 HPV16 cervical neoplasiaRG3484 nucleoside polymerase inh. HCVRG7128* danoprevir (protease inh) HCVRG7227 SGLT2 inh type 2 diabetesRG7201nic alpha7 ADRG3487mGluR5 antag (2) TRDRG7090 NMDA receptor antag TRDEVO ocrelizumab RRMSRG1594anti-glypican Mab liver cancerCHUrhuMab Beta7 ulcerative colitisRG7413anti-LT alpha RARG7416serine palmitoyltransf inh HCVCHU gantenerumab (A-beta) Alzheimer sRG1450anti-factor D geographic atrophyRG7417 BHT-3021 type 1 diabetesRG7426mGluR2 antag (2)

8 DepressionRG1578anti-Abeta Alzheimer sRG7412triple reuptake inh depressionRG716611 beta HSD inh metabolic diseasesRG4929P selectin huMab PVDRG1512 ABCA1 inducer dyslipidemiaRG7273anti-oxLDL sec prev CV eventsRG7418 GABA-A a5 inv ago cogn. disordersRG1662anti-IL-17 Mab RARG4934anti-M1 prime Mab asthmaRG7449nucleoside analogue HCVRG7348 BRaf inhmet. melanoma 2nd/3rd huMab solid tumorsRG7160 CIF/MEK solid tumorsRG7167 Raf & MEK dual inh solid tumorsRG7304anti-PLGF solid tumorsRG7334anti-NRP1 solid tumorsRG7347 MDM2 ant (2 )

9 Solid & hem tumorsRG7112 MEK inh solid tumorsRG7420PI3 K/mTOR solid & hem tumorsRG7422PI3 kinase inh solid tumorsRG7321anti-EGFL7 solid tumorsRG7414dulanermincancerRG3639 AKT inhibitor solid tumorsRG7440 MEK inhsolid tumorsRG7421CD22 Mab vcMMAE solid tumorsRG7593 MabTheraiNHL maint 1stlineRG105*AvastinmBC combo std chemos 1st combo docetaxel 1st *EdirolosteoporosisCHUEPOCH chemo induced anemiaCHUT arcevaNSCLC EGFR mut 1stlineRG1415 CRTH2 antagasthmaRG7185 RituxanNHL fast infusionRG105pertuzumab mBC HER2+ 2ndlineRG1273 BRaf inh(2)BRAF mutated melanomaRG7256 Avastinadj BC HER 2+RG435 Avastinovarian cancer 1stlineRG435 Avastin mBC combo Herceptin 1st lineRG435 Avastinadj NSCLCRG435 ActemrasJIARG1569GA101 anti-CD 20 aggr.

10 NHLRG7159 HCV pol (9) HCVRG7342T-DM1 EBCRG3502 GlyT1 inh schizophreniaRG1678 Avastinadj BC HER2-RG435 Avastin relapsed ovarian caRG435 Avastinhigh risk carcinoidRG435 Avastinglioblastoma 1stlineRG435 Avastinadj BC Triple negRG435aleglitazar CV risk reduction in T2 DRG1439taspoglutideT2 DRG1583dalcetrapibatherosclerosis CV risk macular edemaRG3645 LucentisAMD high doseRG3645pertuzumabmBC HER2+ 1stlineRG1273 Herceptinsc formulation HER2+RG597 Herceptinadj BC HER2+ (2yrs)RG597GA101 anti-CD 20 iNHLRG7159 BRaf inhmet. melanoma 1st lineRG7204 Tarcevaadj NSCLCRG1415 Actemraearly RARG1569T-DM1 mBC 1stline HER2+RG3502GA101 anti-CD 20 CLLRG7159 ActemraRA DMARD IR H2 HRG1569 AvastinmCRC TML RG435T-DM1 mBC 2nd line HER2+RG3502 Actemra sc formulation RARG1569 TarcevaNSCLC EGFR mut 1stlineRG1415 ActemraAnkylosing SpondylitisRG1569 Rituxan ANCA assoc vasculRG105**Her3 Mabsolid tumorsRG7597 Antiangiogenic solid tumorsRG7594 IAP antag(2)